Depreciation

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2013 if Laptop is purchased on 31march should we charge depreciation on it? what will be the depreciation as per I-T and NON I-T Act. please reply.

CA Pallav Singhania

CA Pallav Singhania (Expert)

06 November 2013 Earlier, even in respect of new assets purchased and used any time even on the last date, full year’s depreciation was allowable. However, w.e.f. 1.4.1992 the provision was made that in case of any asset acquired by the assessee during the previous year if it is put to use for business or profession for a period of less than 180 days in that previous year the deduction shall be restricted at half of the normal rate.

Therefore w.e.f. 1.4.1992 if an asset is purchased and put to use for less than 180 days i.e. prior to 2nd October (3rd October in case of leap financial year) of the previous year, depreciation at full rate is allowed and if it is purchased after 2nd October, (3rd October, in case of leap year) depreciation at ½ of normal rate is allowed.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2013 so depreciation can be charged at half rate even if is used for 1 day?

CA Pallav Singhania

CA Pallav Singhania (Expert)

06 November 2013 Yes........ you can claim if it put to use....

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