Charge of depreciation
This query is : Resolved
Guest
Guest
(Expert)
20 June 2014
https://www.caalley.com/gn/gn_dep.html
yes they can claim dear
yes they can claim dear
20 June 2014
well it is a dicey one. reason being section 25 companies dont do business (forget companies act for a minute).
So where do they claim depreciation after claiming full deduction in year or purchase? well it has been decided in favor of assessee on several occasions. please refer https://fmsfindia.org.in/publication_upload/standard/s&n-ls-v4-i6.pdf
So where do they claim depreciation after claiming full deduction in year or purchase? well it has been decided in favor of assessee on several occasions. please refer https://fmsfindia.org.in/publication_upload/standard/s&n-ls-v4-i6.pdf
20 June 2014
Is it mandatory to charge depreciation or is at the option of the Assessee ?
20 June 2014
as far as Income-tax Act is concerned, you can avoid charging given that either:
1. the asset is purchased out of capital contributions and not routed through the profit & Loss A/c
or
2. bought out of general donations and deduction claimed at 100% in the first year itself.
nevertheless, the debate has always been on whether the charitable organization allowed to claim depreciation even if the 100% deduction has already been claimed. On this question it has been repeatedly held that you can do so.
1. the asset is purchased out of capital contributions and not routed through the profit & Loss A/c
or
2. bought out of general donations and deduction claimed at 100% in the first year itself.
nevertheless, the debate has always been on whether the charitable organization allowed to claim depreciation even if the 100% deduction has already been claimed. On this question it has been repeatedly held that you can do so.
20 June 2014
you are welcome Neha.....
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