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
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
