Depreciation provision in case of succession

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deepika maheshwari (Querist)
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03 September 2012 If proprietor of sole proprietorship concern has died on 13th december and his concern is carrying by their two sons by creating a partnership firm from 14th december under the same name. what will the treatment be provide in case of depreciation on fixed assets?

Pankaj Gupta

Pankaj Gupta (Expert)
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03 September 2012 In this case you can claim depreciation twice (ie dep allowable to father+dep allowable to son)
Steps:-

* For father, Calculate dep on the wdv as on 31 march(at full % without seeing 180 days)

* Then for son calculate dep (on full % without seeing 180 days) on wdv as on 13 dec

* You can claim both of the above as depreciation, but in the first year only.

deepika maheshwari

deepika maheshwari (Querist)
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04 September 2012 Thanks Sir

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Pankaj Gupta

Pankaj Gupta (Expert)
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05 September 2012 Give your thanks by clicking below the icon of expert name.

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