Depreciable asset gifted

This query is : Resolved

gaurav (Querist)
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28 May 2008 If the office premises( on which depreciation is charged) is gifted by a person to his son. The cost would be wdv.
Now if the same is transferred suppose on 1st March, who will be able to claim derpecition for the first 6 mths?

Example:-
opening block is Rs. 100
and the same is gifted to his son on 1st March and depreciation rate is 10%
who will be able to claim Rs. 5.i.e. depreciation of first 6 months. The deprication of last 6 months would be claimed by his son

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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28 May 2008 under block method, there is no provision of deducting the wdv of gited asset, so father will continue to avail dep. benefit.

on the other hand, son will claim dep as per explanation 2 of sec 43(1) for 6 months.

it is a case of ommission in i.t. act

gaurav

gaurav (Querist)
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28 May 2008 thanks
if it is only asset then will they will lose depreicaiton for the first 6 months?

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CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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28 May 2008 yes, but on the other hand they will avail benefit of stcl equal to block wdv, because in block system stcl will arise if there is no asset in that block.

so, ultimatly no loss.