Depriciation

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This query is : Resolved

CA Manoj Sahu (Querist)

20 February 2010 A Ltd a listed company declares his 9 months results.

Now the problem is that while calculating provision for income tax whether depriciation as per income tax act 1956 is to be calculated on pro rata basis i.e. for 9 months or as per the rule of 180 days..

Rahul Gupta

Rahul Gupta (Expert)

20 February 2010 As per IT Act, it will calculate dfro whole year since the assets are in use for more than 180 days.

CA Manoj Sahu

CA Manoj Sahu (Querist)

22 February 2010 BUT WHAT ABOUT ASSETS ACQUIRED AFTER 30TH SEP.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

21 July 2024 Assets acquired after the 30th of September are treated differently for depreciation purposes. The depreciation is generally calculated based on the number of months or days the asset was used in that financial year. For example, if an asset is acquired on 1st January, depreciation would typically be calculated for the remaining three months of the financial year.

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