06 March 2009
a person has a proprietory buisness & he purchases a car & use this car as let out of ideal capacity & he earns an income by that way then in such a case where to show the dep. on car & other car expenses? in above case suppose a car is damaged by an accident then where to show the amt. recd. from insurance co.& loss occured on that car?
06 March 2009
In Such a case Income will be shown Under the head Income from other Sources and you can claim all expenditure related to such income u/s 57 which includes Depreciation part also.
And in case of accident, No treatment in income tax unless otherwise you show it as a B&P. and if you treat it as B&P you have to deduct the WDV of Block upto the extent of Insurance Claim received and if you have only one asset in the block then apply CG provisions
CAclubindia
