Determination of Written Down Value in Case Assets Used Partly for Business

Depreciation Allowance not to Exceed Original Cost

The total deductions allowed during the period of ownership of a depreciable asset shall not exceed the original cost of the asset.

Disposal of Assets Used for Business

Where in any tax year, a person disposes of a depreciable asset, no depreciation shall be provided in respect of that year and:

1. If the sale proceeds thereof exceed the written down value, the excess shall be deemed to be the income of the person of that year, chargeable under the head “income from business’, or

2. If the sale proceeds are less than the written down value, the deficit shall be deemed to be an expenditure deductible from the income chargeable under the head ‘income from business’ for that year.

Disposal of Assets Partly Used for Business

Where in any tax year, a person disposes of a depreciable asset Dfa Ho partly used for business, the written down value of the asset is computed by deducting the