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.
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.
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.
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.
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.
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