harshit surana (article) (33 Points)
20 September 2013At what value shall a used car of an assessee be transfered to firm for the purpose of depritiation as per income tax act.
the assessee accuired a car for Rs.589600 in AY 2010-11 & used it for personal use. now he wishes to carry the same car to his firm for claiming depritiation. what shall be the value of car as per income tax act Rs.589600 or Rs.589600 less Dep. for 2 years.
further more the assessee has sold the old car for Rs. 205600 & purchased a new car in the same year
CA. Kunal Lakhotia
(ACA)
(1006 Points)
Replied 20 September 2013
If he was claiming dep for the car then WDV and if not, then the FMV will the right option
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 20 September 2013
Car can be transferred to Firm at any value and firm can claim deprec. on the same , provided firm is using the same for business purpose:
Tax consequences will be as under:
As per Sec 45(4) capital gain will arise in the hands of partner:
Full Value of Cons(Value at which car trfd to firm) xxxx
less:Cost/Indxed cost of acquis in the hands of Partner xxxx
harshit surana
(article)
(33 Points)
Replied 20 September 2013
@ kunal lakhotia what if carry the carr at purchase cost? further more the assessee has sold the old car for Rs. 205600 & purchased a new car in the same year
CAclubindia
