Depreciation on Fixed Asset beyond useful years

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This discussion addresses whether an asset, like a laptop, can still be depreciated even after exceeding its initial useful life. While the IT Act allows for writing off the full amount if it's the only asset left in a block, the Companies Act generally permits continued depreciation. The rules align with Schedule II for assets, with specific considerations for assets under Rs. 5000.

vijay

vijay (Querist)

10 April 2023 If an asset ( Laptop ) of INR 30,000 is procured and put to use on 31st March 2019 and has been depreciated @ 63.16 % per year ( useful value of 3 Years ) and as on 31st March 2022 its value is INR 1,500 Can it still be depreciated in FY 22-23 ??

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

10 April 2023 As per IT act, if that be the only asset left in the block of assets, you can write off the amount fully.

vijay

vijay (Querist)

11 April 2023 What will be the treatment under companies Act ?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

11 April 2023 Yes, allowed to depreciate.
The concept of 100% depreciation of assets whose cost are less than Rs. 5000/- is deleted hence under new act it will be depreciated as per other normal provisions of schedule II.

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