No deduction of Depreciation allowed if income Taxed u/s 44AD of Income Tax Act : ITAT IN THE ITAT ALLAHABAD BENCH ‘SMC’ Sudhakar Pandey v. ACIT, Mirzapur, U.P. VIJAY PAL RAO, JUDICIAL MEMBER IT APPEAL NO. 7 (ALLD) OF 2021 [ASSESSMENT YEAR 2014-15] DECEMBER 17, 2021 Ashish Bansal, Adv. for the Appellant. A.K. Singh, Sr. DR for the… Read More »
New Income Tax Depreciation Rates for Motor Vehicles The Central Board of Direct Taxes (CBDT) has notified new depreciation rate of 30% on motor cars (other than those used in a business of running them on hire) & 45% on Motor buses, motor lorries and motor taxis used in a business of running them on… Read More »
Businesses should review depreciation deductions rules Businesses should know the tax rules for deducting depreciation on certain property. This deduction can benefit eligible business taxpayers. The Tax Cuts and Jobs Act made changes to the rules around depreciation that will affect many businesses. First off, businesses should remember they can generally depreciate tangible property, except land. Tangible… Read More »
Rates of depreciation (for income-tax) [As amended by Finance Act, 2019] AS APPLICABLE FROM THE ASSESSMENT YEAR 2003-04 ONWARDS Block of assets Depreciation allowance as percentage of written down value AYs 2003-04 to 2005-06 AY 2006-07 to AY 2017-18 AY 2018-19 onwards 1 2 3 4 PART A TANGIBLE ASSETS I. BUILDING [See Notes 1 to 4… Read More »
Capital expenditure incurred in cash : Depreciation Disallowed CIRCULAR No. 2/2018 Dated 15.02.2018 20. Disallowance of depreciation under section 32 and capital expenditure under section 35AD on cash payment. 20.1 Sub-section (3) of section 40A of the Income-tax Act provides that revenue expenditure incurred in cash exceeding certain monetary threshold is not allowable except in such… Read More »
Issue Assessing Officer in disallowing the claim of Depreciation amounting to Rs. 91,87,713/- on the alleged plea that the Film Projector is to be depreciated @ 15% instead of 60%, IN THE ITAT MUMBAI BENCH ‘SMC’ Cinetech Entertainment India (P.) Ltd. v. Income Tax Officer, Ward- 16 (1) (1), Mumbai SHAMIM YAHYA, ACCOUNTANT MEMBER IT… Read More »
Held The assessee has incurred the landscape expenses on the leasehold land situated at Sikkim Unit to level the uneven land for construction of factory building. Since the same has been disallowed as capital in nature, the same should be included in the block of building and the assessee would be entitled for depreciation @10%.… Read More »
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 103/2016 New Delhi, the 7th November, 2016 Income Tax S.O. 3399(E).-In exercise of the powers conferred by section 32, section 115BA and section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following… Read More »
Depreciation of brand value The Chennai Bench of the Income-tax Appellate Tribunal held that a taxpayer is eligible to claim depreciation with respect to a “brand value” The tribunal found that merely because there was subsequent amalgamation was not a basis for finding the taxpayer had not acquired any brand name. When the taxpayer acquired… Read More »
Depreciation of goodwill The Bangalore Bench of the Income-tax Tribunal held that the taxpayer cannot claim depreciation on assets acquired through an amalgamation, including goodwill, more than the depreciation that would be allowable to the amalgamating company. The case is: United Breweries Ltd. Read an October 2016 report of KPMG [PDF 315 KB]