fixed assets

[kinjal goyal]

e.g. a purchased a flat for rs. 10,00,000 on 1.4.10. he got electric installation in flat for rs. 42,000 on 5.4.10. flat was put to use on 31.05.10. can u please tell me what amount should i record under flat head @ 10% dep ? and rs. 42,000 will be included in cost of flat or it will be shown separately as electric installation @15% dep. ?

AI Summary

Clarification on Depreciation: Electrical Installations as Furniture & Fixtures, Separate from Flat Cost, 10% Rate Since 2006-07. A user inquired about how to record the cost of a flat and its electrical installation for depreciation purposes under income tax rules. They asked whether the electrical installation should be included in the flat's cost or recorded separately. A respondent clarified that electrical fittings like wiring and switches are considered part of furniture and fixtures, subject to a 10% depreciation rate since the assessment year 2006-07. The user further questioned if the installation should be included with the house since it was done before the asset was put to use. The respondent suggested that common wiring is part of the house, while expensive fittings should be treated separately.