# Depreciation in Special Cases
When a business undergoes structural change during the year, depreciation is not calculated separately for the predecessor and successor. Instead, a single calculation is done for the entire year, and the resulting depreciation is then split between the two entities.
## Situations Covered
This rule applies to:
1. Amalgamation / Demerger of companies
2. Conversion of a company into an LLP
3. Succession of a firm/proprietorship by a company
## How to Compute
Step 1: Calculate depreciation for the whole year on the block of assets, as if no transfer/conversion had occurred.
Step 2: Apportion this depreciation between the predecessor and successor in the ratio of the number of days each used the asset.
## Rationale
The rule prevents double benefit (each party claiming full depreciation) and also prevents loss of legitimate deduction. By treating the year as continuous, the total depreciation matches what one entity would have claimed.