Depreciation in case of transfer of business read more at:
This query is : Resolved
26 June 2014
What will be the effect of Depreciation in case of Transfer of Business from deceased Father to Son as per Income Tax Act ( Succession on Death) ?
We are going to make 2 Balance Sheets.
Do we calculate Depreciation in the proportion of Number of Days of assets used or 50:50 or wholly in books of Father or wholly in books of Son?
Business was transferred on 17.01.2014. Will the Successor Son get Depreciation at half the depreciation rate or full rate owing to less than 180 days of use ?
Also let us know the accounting effect....
We are going to make 2 Balance Sheets.
Do we calculate Depreciation in the proportion of Number of Days of assets used or 50:50 or wholly in books of Father or wholly in books of Son?
Business was transferred on 17.01.2014. Will the Successor Son get Depreciation at half the depreciation rate or full rate owing to less than 180 days of use ?
Also let us know the accounting effect....
27 June 2014
Depreciation will be available at full rate. When business is transferred, the period of depreciation will be considered as of previous owner.
Depreciation will be calculated on the proportion of no. of days for which asset was held.
Depreciation will be calculated on the proportion of no. of days for which asset was held.
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27 June 2014
Sir have you considered that the succession is by death?
What wiil be the implication is the succession is not by death?
What wiil be the implication is the succession is not by death?
27 June 2014
There will not be any change because you are going to maintain 2 balance sheet.
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