Depreciation
This query is : Resolved
29 December 2012
sir,
is depreciation mandatory under compaines act like in income tax act???
is depreciation mandatory under compaines act like in income tax act???
29 December 2012
Charging depreciation to P & L account is not mandatory as per companies act.
But before declaring dividend provision for depreciation must be taken into account (section 205)
But before declaring dividend provision for depreciation must be taken into account (section 205)
Message likes :
1 times
29 December 2012
sir if in a pvt ltd company asset is sold during the year.. and depreciation is not charged as per co. act.. (for saving tax liability) because as per income tax act we can not claim depreciation as it does not exist on 31st march..
what are the consequences ?? and no dividen is proposed during the year
what are the consequences ?? and no dividen is proposed during the year
29 December 2012
sir,
for example :-
NET BLOCK OF COMPUTER AS ON 1-4-2011 IS RS 100000
AND SOLD ON 30TH MARCH 2012
NOW AS PER CO. ACT WE CAN CLAIM DEPRECIATION ON THIS COMPUTER = 40%*100000*365/366 =39891
BUT WE CAN NOT CLAIM DEP. UNDER INCOME TAX ACT.. BECAUSE IT DOES NOT EXIST ON 31ST MARCH
AND IN COMPUTIN TAX LIABILITY
WE ADD DEP. AS PER CO. ACT IN GROSS TOTAL INCOME AND DEDUCT DEP AS PER INCOME TAX ACT ?
AND DEFFERED TAX ASSET REMAINS IN B/S..
for example :-
NET BLOCK OF COMPUTER AS ON 1-4-2011 IS RS 100000
AND SOLD ON 30TH MARCH 2012
NOW AS PER CO. ACT WE CAN CLAIM DEPRECIATION ON THIS COMPUTER = 40%*100000*365/366 =39891
BUT WE CAN NOT CLAIM DEP. UNDER INCOME TAX ACT.. BECAUSE IT DOES NOT EXIST ON 31ST MARCH
AND IN COMPUTIN TAX LIABILITY
WE ADD DEP. AS PER CO. ACT IN GROSS TOTAL INCOME AND DEDUCT DEP AS PER INCOME TAX ACT ?
AND DEFFERED TAX ASSET REMAINS IN B/S..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- TDS on purchase of under construction property from a reseller
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- Non filing of I T Returns
- SALARY CAN BE CAPITALIZE
- Under marginal scheme
- EPF ECR NEW FILE SEP 17TH 2026
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- GST on Renting godown to KFCSC for Storage of Raagi
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
