I am getting commission income (agent) from the bank for deposits. Primarily I use a two-wheeler for this purpose. I have purchased a two-wheeler for the cost of INR 1 lacs. As per charts-and-tables, the depreciation [III (2) (i)] of a motor vehicle is 15%. So this year I can claim 15%, i.e 15K and in next year I can claim the remaining 85K in the next FY.
Kindly let me know whether my understanding is correct.
Hey @justjaks
Commission income falls under the residuary head of income i.e. Income from Other Sources (IFOS). However, if you are engaged in the commission business, then the income from commission business shall be offered to tax under the head “Income from business and profession”
In order to claim depreciation, the asset must be used for the purpose of business or profession
The depreciation on the motor vehicles is 15% and you can claim 15% of the Written down Value as depreciation.
So, the depreciation shall be:
1st Year: 100000*.15=15000 INR
2nd Year: (100000-15000)*.15= 12750 INR
and so on.
Hope this helps!