03 June 2013
Hello Experts, I want to know the reason behind calculation of depreciation upto ay upto ay 1987-88 and 1988-89 and future ay separately in case of slum sale gift or inheritance of assets under section 43(1) expl 2
03 June 2013
As before 1988-89, depreciation system in income was different unlike the block system we use these days. The block concept of deprecation was introduced by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986 with effect from 1-4-1988.
Hence due to two separate methods of depreciation different treatment is written in law.
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