Transfer of Depreciable Assets( Office Premises)

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Ajay S.Yadav

Student

148 Points Joined January 2009

Dear Sir / Madam,

I want the following clarification w. r. t. transfer of Depreciable Assets being an office premises on which depreciation is charged for a period of 8 years.

1. Can I transfer the Depreciable assets ( office premises) to my Son as a Gift?

2. If answer to 1 is yes then what is the tax Implication on the same.

3. How to disclose this transaction in Return of income and what documents are to be made ?

4. How much stamp duty is to be paid on transfer of Depreciable Assets as a gift?

Replies (6)

yasaswi gomes

My grammar is 💯 good I

7296 Points Joined March 2019

AS suggests all company assets can only be disposed or exchanged for consideration or, when their useful life is over. I’m not sure that anyone can transfer any assets as a gift.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Joined November 2019

I think office assets cannot be transferred as gift

Ajay S.Yadav

Student

148 Points Joined January 2009

Can you please give any reference under income tax act or any other act which restrict such transfer?

yasaswi gomes

My grammar is 💯 good I

7296 Points Joined March 2019

Hi, only depreciation and other transactions which give temporary difference is adjusted for tax purpose. When it comes to disposal, the tax is capital gains. But, tax does restrict such transfer because, one can’t claim depreciation and transfer the asset. That is why disposal standards are used. Anything out of this, the transaction is not possible because imagine that your a tax collector, I purchased a big factory, used it for profits, fully claimed depreciation and gifted it. Your at a loss of capital gains and depreciation claims and that is the reason why Standards are mandatory while tax is statutory.