Proprietorship firm liable for Tax Audit is having various fixed assets in balance sheet which are solely for personal use of proprietor.
My query is since the above fixed assets are not eligible for depreciation u/s 32,is it required to fill clause 18 of Form-3CD?(If yes then should we only enter book value of assets and enter 0 in depreciation column)
Since those personal assets are appearing in Balance Sheet,
one way is to remove those assets from Balance Sheet.
Second option is to provide depreciation as usual and disallow that much depreciation in computation of business income.
CAclubindia
