Depreciation as per income tax

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vicky (Querist)
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28 September 2015 One of our clients has acquired plant and machineries in AY 2014-15. However, these assets were put to use in AY 2015-16 starting from 1st of November 2014 (i.e. for a period less than 180 days). Query Wether depreciation as per income tax will be charged for full year or half year (considering the fact that assets were acquired in last year and put to use in current year)? Please help!! Urgent!

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 "Put to use" is not a concern of income tax. "Ready for use" is sufficient for Income Tax. You can take the call accordingly for AY 2014 15. Once you do that, AY 2015 16 will have full year's depreciation.

vicky

vicky (Querist)
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28 September 2015 Sir, Can you provide me with any extract from the concerned section justifying application of full year depreciation?

Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2015 follow this link

https://taxguru.in/income-tax-case-laws/allowability-of-depreciation-on-a-plant-which-was-ready-for-use-but-not-used.html

"keeping ready to use" is the punch line. See if your case is covered under that.

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