An assessee has purchased a car for business purposes on 10th June, 2016 for ₹ 10 lakhs. This is the only asset in the block of assets. In the previous years 2016-17 and 2017-18, 25% of the usage of car was for personal

Calculation of Depreciation on Car allowable for AY 2018-19 Particulars Amount (₹) Amount (₹) Purchase price of Car 10,00,000 Less: Depreciation @ 15% for PY 2016-17 1,50,000 Depreciation not allowable for personal use (25%) (37,500) (1,12,500) Written Down value as on 01.04.2017 8,87,500 Less: Depreciation @ 15% for PY 2017-18 1,33,125 Depreciation not allowable for personal use (25%) (33,281) 99,844 Note: The Car after the purchase being used for business purpose 75% and personal purpose 25%. Therefore depreciation allowable as per section 32 read with section 37(1) is 75% of the depreciation to be calculated @ 15% on the value of the car.