depriciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 October 2009
can we provide depriciaton on asset which is purchased long back(i.e say 2 or 3 years back)?
if, yes. with out using asset and with out getting any revenue from that machine how can we? (matching principle)
if,no. even though the asset not used in business, because of technology absolescence it will loose its value. then what is solution for it?
if, yes. with out using asset and with out getting any revenue from that machine how can we? (matching principle)
if,no. even though the asset not used in business, because of technology absolescence it will loose its value. then what is solution for it?
01 November 2009
If you have started using the machinery now you can very well claim depreciation.
It should be used in your business or profession, the generation of income is secondary, still you can cliam deprecaiation.
If the machinery has been kept idle and since it now obsolete you can claim loss on sale of asset at the time of sale or if realisable value is nil the entire amount you can write off as loss. But you should have proper working papers with you so that when assessing officer issues notice you can explain him properly.
It should be used in your business or profession, the generation of income is secondary, still you can cliam deprecaiation.
If the machinery has been kept idle and since it now obsolete you can claim loss on sale of asset at the time of sale or if realisable value is nil the entire amount you can write off as loss. But you should have proper working papers with you so that when assessing officer issues notice you can explain him properly.
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