Depreciation under income tax act

Pages : 1

arunkumar
ca ipcc group 1 passed

[ Scorecard : 40]

Posted On 16 June 2012 at 16:58

If fixed asset purchased in cash then how depreciation is applied under income tax act

Giridhar S Karandikar
Team Lead

[ Scorecard : 2671]

Posted On 16 June 2012 at 21:49

Same procedure is to be followed, charge deprn at the applicable rates to teh FA.

CA Mukul Mittal
CA in practice

[ Scorecard : 359]

Posted On 16 June 2012 at 22:23

Cash purchase won't change the principle of depreciation.

work is worship
Service

[ Scorecard : 1377]

Posted On 17 June 2012 at 01:32

Whether cash or any other mode of payment , depreciation procedure is same.

However as per Rule 6 D OF IT ACT, cash provision above INR 20,000 is disallowed. for expenses

Giridhar S Karandikar
Team Lead

[ Scorecard : 2671]

Posted On 17 June 2012 at 11:20

Mr work is worship, cash disallowance is not applicable for B/S items. only for the items that are routed through P&L the disallowance is applicable. Depreciation being a loss the disallowance as per Rule 6DD is N/A.

Total thanks : 1 times

Himanshu Bansal
CA Final & Article

[ Scorecard : 1645]

Posted On 17 June 2012 at 12:27

Originally posted by : CA Mukul Mittal
	Cash purchase won't change the principle of depreciation.

sumit chejara
ca final

[ Scorecard : 87]

Posted On 17 June 2012 at 20:46

Disallowance of payment exceeding Rs 20000 does not apply for payment of fixed assets.............

CMA Siyad Abdul salam
Cheif Accounts and Costing Officer

[ Scorecard : 22]

Posted On 17 June 2012 at 23:15

"Mode of purchase does not change the Rule of Depreciation under Income Tax Act", So it is treated as usual u/s 6 D of Income Tax Act and apply the Applicable rate (Specified in Income tax Act) to the Concerned Block of Asset.