Depriciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 respected sir,

kindly guide me
we are a proprietory firm.
depriciation of rs 3.25 lac was not allowed us in computation of income due to subsidi in fy 2009-2010.

can we show the not allowed depriciation as capital incerased in fy 11-12?.because in fact profit is increased by 3.25 lac.

thanking you

CA Hardik Bunha

CA Hardik Bunha (Expert)
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18 August 2011 No, absolutely no........subsidy received is a capital receipt. you should decrease value of your asset by subsidy amount.remaining amount will be eligible for depreciation.

No you can NOT show not allowed depreciation as capital increased. As per section 32 of I.T. Act,1961

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2011 thanking you