- Please provide the date of acquisition of land.The amendment was done three years back.
Proprietorship
Iam having propitorship business and my business is under audit.. My question is that 8 years ago I bought a car worth 5 lakh and land worth 7 lakh..for personal use in cash and at that tym also my business was in audit.. Now iam deciding to use that car and land in my business.. so can i claim depriciation on car if I introduce it in my business this year..? And also if I introduce land in my business this year and then sell it after some time then would iam not able to claim the cost value of that land which I payed in cash while in bought .. just bcz at that tym i bought in cash? Bcz as per Incometax one can’t claim cost value of assest in business if bought in cash to calculate capital gain at the time of sell
Asked 5 years ago in Income Tax
What was the amendment..and land was buyed in May 2011 And what about car? Also personal house built last year in cash and now used in business then won’t depriciation will be available? And also if we claim cost value whole selling then would it be cant claim? And this restriction is also when someone file return in 44ad?
Asked 5 years ago
- Land is not a depreciable asset. If it is building and value of building is ascertainable then you can claim depreciation if it is used for the purpose of business. From AY 2018-19, any payment exceding Rs.10k for purchase of depreciable asset will not qualify for depreciation.You can introduce both assets in business and can claim depreciation. At the time of sale, cost appearing in sale deed would be considered.
If the asset were purchased before April 2018 you can claim it's depreciation and cost as well.
As far as land is concerned if it's purchase before 2015 then you could have purchased it in cash otherwise not.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
You were allowed to purchase land in cash before April 2015.
This restriction is not there in 44AD return.
Hello,
You can bring the car into your business and claim depreciation from the year of its use for business purposes.
Regarding land, you can claim the cost value at the time of its sale.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You won't be eligible to claim depreciation on the amount exceeding Rs. 10,000 paid in cash for the house building.
Hi,
Yes, you can claim depreciation on car if you introduce it in your business this year.
Land is not depreciated because land is assumed to have an unlimited useful life.
You can not claim depreciation on the house building if amount exceeding Rs. 10,000 paid in cash for it.
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