Depreciation on asset after sold
This query is : Resolved
02 February 2024
Dear Sir,
can we take 6 months depreciation, when asset sold in oct/November-23?
can we take 6 months depreciation, when asset sold in oct/November-23?
02 February 2024
If it's not a ltd or pvt Ltd then Depreciation required full year.
13 August 2025
For Companies (Pvt Ltd, Ltd)
As per Companies Act & Income Tax Act, depreciation is allowed pro-rata for the period asset was owned during the year.
So if asset is sold in Oct/Nov (say after 6 months), you can claim depreciation only for those 6 months in that financial year.
For Proprietorship/Firms (Non-company)
Generally, depreciation is claimed for the full financial year, even if the asset is sold during the year.
This is because depreciation in these entities follows income tax provisions which allow full year depreciation unless asset is sold before the year starts or at the start of the year.
As per Companies Act & Income Tax Act, depreciation is allowed pro-rata for the period asset was owned during the year.
So if asset is sold in Oct/Nov (say after 6 months), you can claim depreciation only for those 6 months in that financial year.
For Proprietorship/Firms (Non-company)
Generally, depreciation is claimed for the full financial year, even if the asset is sold during the year.
This is because depreciation in these entities follows income tax provisions which allow full year depreciation unless asset is sold before the year starts or at the start of the year.
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
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- ITR validation error - Balance sheet is not filled
- TDS ON CASH WITHDRAWALS...
- Query regarding TDS on EPFO Higher Pension Arrears*
- Bank accounts of Non resident
- ITR Filing Requirement for Partnership Firm Registered but Business Not Commenced
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Delisted shares sold in off market/ Rebate u/s87A
- Error whiling application of GST REFUND (ANNEXURE B)
- While filing GSTR9 accountant couldn't entered the ITC values in Table 6, in 9C it is not accepting
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
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
