depreciation

This query is : Resolved

Guest

Guest (Querist)

21 December 2009 can full year depreciation be claimed on a motor car purchased on 30/9 of a Financial Year??
can AO allow only 1/2 year depreciation under the plea that if its purchased on 30/9, it cant be put to use for 180 days, & so only 7-1/2 year depreciation is allowed??

Heera Nahariya

Heera Nahariya (Expert)
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21 December 2009 If the underlying asset is put to use more than 180 days full depreciation is to be claimed.
If you cannot establish that the asset is put into the use for more than 180 days only 50% of depreciation is available,

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 December 2009 The date of payment of vehicle tax or the date of obtaining vehicle number whichever is later may be considered as the date from which the vehicle is put to use. From that date if the vehicle is put into use for a period of less than 180 days, then AO can restrict depreciation allowance to 1/2 of the normal rate.

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