asset purchased below Rs 5000

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ABHIJIT (Querist)
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10 July 2009 hi
if asset is purchased in a year whose value is less than Rs.5000, should be depreciated at 100% as per companies act.
pls tell me if this depreciation should be taken as per day wise depreciation or directly written off full figure of assets below Rs. 5000.
for example if asset puchased in a year whose value is Rs 4000 and used in a year for 150 days.then depreciation should b taken for 150 days only or directly written off Rs 4000 as depreciation????

IS THERE ANY EFFECT ON INCOME TAX DEPRECIATION????
WHAT IF ASSETS IS FULLY W/OFF AS PER COMPANIES ACT DEP BECAUSE OF RS. 5000 AND USED FOR FULL YEAR THEN WHAT WILL BE EFFECT ON INCOMETAX DEPRECIATION.
ASSET WIL NOT SHOW IN BOOKS OF ACCOUNTS BUT WILL SHOW IN INCOMETAX DEPRECIATION?

PLS TELL ME
THANKS

Jitender

Jitender (Expert)
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11 July 2009 if asset is of less than 5000, then 100% dep can be cliamed without applying pro-rata basis.

these assets will be shown as assets under income tax act & normal dep will be claimed.

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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11 July 2009 agree

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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11 July 2009 I also agree with expert.

CA Bosu babu

CA Bosu babu (Expert)
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11 July 2009 As per companies act write off total and give total assets value which are <5k in notes.....

as per IT act no such provision is there....so even 500 rupees also should show as asset and claim normal depn

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