DEPRECIATION UNDER INCOME TAX ACT.

SANJIV BATRA (Querist) 11 September 2010 This query is : Resolved
WILL DEPRECIATION UNDER INCOME TAX ACT. BE AVAILABLE TO THE PROPRIETORSHIP FIRM ON BUSINESS ASSET SUCH AS BUILDING WHICH IS HELD IN THE JOINT NAMES OF MR.X SOLE PROPRIETOR OF THE FIRM AND HIS WIFE (MR.X'S WIFE)? PLEASE CLARIFY.

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A V Vishal (Expert) 11 September 2010
The depreciation can be claimed to the extent on the value of the building shown in the proprietary business balance sheet. This is because both husband (proprietor) and wife are joint owners, the share of the proprietor in the building is revealed in the balance sheet as his investment in the fixed asset and the same is utilized for his own business.