Claim of depreciation

This query is : Resolved

SVSC SEKHARA SASTRY (Querist)
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03 August 2011 Dear experts,
I would like to know can an individual, who is a managing director of a pvt. ltd. co. calculate depreciation on his assets in his personal income tax assessment return? If yes, what is the fundamental procedure? Can he less the depreciation from his total income for taxation? Kindly give your valuable feedback immediately.

Thanks / Regards,

S.V.S.C.S.SASTRY

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 August 2011 There is no restriction on managing Director to claim depreciation in case he is having other source of income which is generating business or professional income
to him.

Salaried persons can not claim depreciation.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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03 August 2011 Depreciation can be claimed only if there is business or profession income. Suppose that MD is also carrying business in his name and he uses the assets for that business, then only he can claim depreciation on such assets.

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SVSC SEKHARA SASTRY

SVSC SEKHARA SASTRY (Querist)
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04 August 2011 Thank you for your immediate response. I would like to know that, He has income other than remuneration from company i.e., commission on sales, rental receipts, mutual funds investments, savings bank interests, agricultural. So as per Mr.Paras Bafna's clarification, he has some fixed assets like flat, computer, some other equipments purchased on his name and using by him personally and paying all municipal taxes from his income. Kindly give your valuable feedback.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 August 2011 Please go through Expert Amol's Advise-

"Depreciation can be claimed only if there is business or profession income. Suppose that MD is also carrying business in his name and he uses the assets for that business, then only he can claim depreciation on such assets. "

Q-he has some fixed assets like flat, computer, some other equipments purchased on his name and using by him personally and paying all municipal taxes from his income. Kindly give your valuable feedback.

Reply- On personal assets like flat, fridge, washing machine etc. depreciation
can not be claimed.

However, he can say that- he is using Computer exclusively for business purpose
Depreciation will be allowed. If he says that car1 is partly used for business purpose, that part depreciation can be claimed.