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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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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