sumeet (elelctronic) (108 Points)
03 April 2012Car Depreciation in Individual's Tax Assessment is allowed at the rate of 15% per annum , can i claim Car Depreciation in Individual's Tax Assessment at lower rate say 5% or 10% and not full 15%.
and if during period business income is less than Car Depreciation in Individual's Tax Assessment can be claimed at 0%
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 03 April 2012
Firstly, Car Depreciation cannot be claimed @ lesser rate than specified in the Act.
Secondly, if depreciation is more than Business Income, then show depreciation upto Business Income and show NIL income from Business or Profession. then carry forward Unabsorbed Depreciation or set - off with other incomes available.
P.S. Unabsorbed Depreciation can be carried forward indefinitely.
Regards
Prateek
sumeet
(elelctronic)
(108 Points)
Replied 04 April 2012
| Originally posted by : su | ||
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Car Depreciation in Individual's Tax Assessment is allowed at the rate of 15% per annum , can i claim Car Depreciation in Individual's Tax Assessment at lower rate say 5% or 10% and not full 15%. and if during period business income is less than Car Depreciation in Individual's Tax Assessment can be claimed at 0% |
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i received this message from some one is this possible
Normally the depreciation on car has to be at a rate as prescribed in Income tax Act 1961. But, you can declare that the car was used partially for personal purposes and partially for business purposes and claim depreciation to the extent used relating to business, which will be obviously less than the normal depreciation. Such a claim for business depreciation can even be 0% if the car was used entirely for personal purposes during that year.
Brajesh gautam
(student)
(232 Points)
Replied 14 April 2012
Dear Sir
how will you prove this that car was used partially in business or partially for home use
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 17 April 2012
In case if you want to show partial usage of the vehicle, you have to maintain a log book of the car mentioning the distance traversed for official or personal purpose.
That would make things much easier to differentiate.
anjali
(partner)
(28 Points)
Replied 03 February 2016
IN INDIVIDUAL RETURN CAN CAR DEPRICIATION BE CLAIMED LOWER THAN 15%?
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