26 April 2008
depreciation which can't be set off against current year's profit remain accumulated. it can be carried forward & setoff against foture profits for unlimited period.
Jitender first of all something i want to say to you, give reply most welcome, but keep the Query open because the some more answer may be came out due to open query.
Secondly Your answer regarding this query is TOTALLY ON WRONG PREMISES. Because Accumulated Depeciation is not what you describe, as per me
AS per Schedule VI requirement we have to Disclose the Fixed Assets on their gross Value instead of NET Value and we have to charges off the Depreciation every year in books and simultanously Accumulated Depreciation is to be maintained
A/cing Entry
Depreciation A/c DR. TO Accumulated Depreciation
Then we have to charge off the Depreciation from Profit and Loss account and Accumulated Depreciation we have to Disclose In B/S along with the Gross ualue of Fixed Assets.
Please Read the Incoem Tax provision on the basis of u give the reply , U are not saying correctly even now, this in not as per Income Tax Act,
which u said that is actually UNABSORBED DEPRECIATION NOT ACCUMULATED DEPRECIATION, OK.
Yes Pankaj,
Deprciaion calculates on Assets wise on the Assets Register and some blocks are there if u want to Check assets wise depreciation then u have to go on your Register , in books it is not possible. and accumulated depreciation entry passe with the Block like Accumulated deprecaition on Plant & Mach. Accumulated dep. on Furniture etc. Ok
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