Depreciation amount in itr 4

This query is : Resolved

Rahul Agarwal (Querist)
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27 July 2013 An Individual has a personal asset say motorcycle, and he earns income from teaching students.Should he show asset and depreciation amount in ITR 4?

CA VISHNU GAVKARE

CA VISHNU GAVKARE (Expert)
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28 July 2013 If motorcycle is used for profession he can. in this case if he travels on it only for teaching purpose then full depreciation can be claimed otherwise proportionate depreciation shall be claimed.

Rahul Agarwal

Rahul Agarwal (Querist)
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28 July 2013 if the person teaches at home....and uses motorcycle for personal purposes then Sir?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 In the context of Income Tax Returns (ITR), the treatment of personal assets such as a motorcycle and their depreciation can vary based on their usage and nature. Here's how it generally applies:

### Motorcycle as a Personal Asset:

1. **Personal Use Only:**
- If the motorcycle is solely used for personal purposes, such as commuting or other personal activities, it does not qualify as a business asset.
- Personal assets used exclusively for personal purposes generally do not require depreciation to be claimed in the Income Tax Return (ITR).

2. **No Depreciation in ITR:**
- Since the motorcycle is not used for generating income or business purposes, depreciation on the motorcycle should not be claimed in the ITR.
- In the ITR, only assets used for business or professional purposes are typically considered for depreciation.

### Teaching Income:

1. **Teaching Income:**
- Income earned from teaching students, if it constitutes a business or professional activity, should be reported under the appropriate heads of income in the ITR.
- This income would typically be reported under the head "Profits and Gains of Business or Profession" in the ITR Form 4 (or ITR 3, depending on the specifics of the income).

2. **Business Use of Motorcycle:**
- If the individual uses the motorcycle partially for business purposes related to teaching (e.g., commuting to teaching locations, purchasing teaching materials, etc.), a proportionate part of the motorcycle's expenses (like fuel and maintenance) could be claimed as business expenses.
- However, since the motorcycle is primarily for personal use, only a partial proportion related to business use would be eligible as an expense.

### Conclusion:

- **Motorcycle as Personal Asset:** For a motorcycle used solely for personal purposes, depreciation should not be claimed in the ITR.
- **Teaching Income:** Income earned from teaching should be reported in the ITR under the appropriate income head. Expenses related to the business or profession can be deducted from the income to arrive at taxable income.
- **Partial Business Use:** If the motorcycle is partially used for business purposes related to teaching, only a proportionate part of expenses can be claimed as deductions.

It's essential to maintain clear records of usage and expenses related to any asset used partially for business or professional purposes. If there are specific details about usage or expenses, consulting with a tax professional or accountant can provide personalized guidance for accurate reporting in the ITR.