Depreciation for firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2012 i have a client whose was properitership firm in 2011-12 but on 1st sept 2011 , the properietership converted into partnership. now my query for depreciation that how to calculate depreciation which can be claimed for the purpose income tax act 1961. and the calculation will be perportionate or as per income tax act rule ( after or before sep/full or half dep)

CA UMESHKUMAR R. ACHARYA

CA UMESHKUMAR R. ACHARYA (Expert)
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26 June 2012
From 1-09-2011 you have converted your proprietory Concern into Partnership.

Now as both are the different entity under Income Tax Act, sales Tax etc. so it is advisable to prepare two diff books of account.
First up to 30-08-2011, in your pro. firm
you cannot claim depreciation as there is no
asset in prop. concern as on 31-03-2012.

The value at which you transferred it
to partnership firm is a purchase cost
for the firm and you can claim depreciation
for full year @ rates prescribed under ITact.

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2012 thanks sir

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