SEC 35ABB

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Guest (Querist)

17 June 2009 PLEASE EXPLAIN ME SEC 35ABB OF IT I ONLY WANT KNOW SALE OF LICENCE PROVISION WITH CERTAIN EG.(NUMERICAL EG.)

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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17 June 2009 Dear Sweta
Take it for Granted u have purchased Telecommunication License for 10 years for Rs.10 Lacs, u will get Rs.1 lac as deduction per year (cost of License amortise over no. of years for which lisence valid)
now say after 4 year u sold out some portion of license for Rs.3 Lac, therefore now deduction for 5th year onward shall be
cost after 4 year Rs.6 Lac
Less Sold out portion viz.Rs.3 Lac
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Balance Rs.3 Lac
No. of Year remain 6
Deduction per year Rs.0.5 Lac
(Rs.3Lacs/6 year)