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Depreciation charged on fixed assets

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Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011

depreciation charged on fixed assets it is mandatory or not. if i have purchase car and not charged depreciation it is correct or not correct.

Regards
Amit Kumar Agarwal
Tax Consultants

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Guest (Expert)

07 February 2011 As per incometax act, depreciation is mandatory whether you provide in the books or not

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 February 2011 I agree with Mr. K C Moondra , and want to further add that-

In case car is used for personal purpose only, you need not to charge depreciation.

But whenever you will introduce it as a business asset, it will be deemed that you have been allowed depreciation and as such you will be able to charge depreciation on WDV after calculating depreciation as if allowed.

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