Hi there,
I work as a freelance mobile application developer. I bought two phones - Android phone (cost Rs.11k) in April'11 and an iPhone 4S (Cost Rs.44.5k) in Dec'11. The purpose of these phones are strictly for development, testing and debuging of apps that I develop. I rarely use these phones for my personal use (I have a cheap nokia phone for that).
Question:
1. Can I show cost of smartphones as expenses? Is it fully deductable? (Btw. I wish to allocate 80% of invoice value as expenses, if possible).
2. Can I claim depreciation of those phones in next years filing? if yes, is it @ 15% for Smartphones?
As per requirement of my profession I may have to purchase more than 1 phones every year and I'm wondering if deductions and depreciations are allowed here.
I'd reallly appreciate your reply.
Thanks!
Tamal