Depriciation in ist year
This query is : Resolved
11 April 2016
My friend has started proprietor concern in Jan-2016 & achieve a turnover of Rs. 4.25 Lacs in F.Y. 2015-16. Due to depreciation of Rs. 1,31,000/- (50% due to IInd half) there is a loss of Rs. 27630/-.
My query is that is it compulsory to take depreciation, or we take 3 months depreciation. Moreover, is it mandatory to gets the accounts audited as the N.P. is below 8%.
Please guide me sir, its most urgent.
My query is that is it compulsory to take depreciation, or we take 3 months depreciation. Moreover, is it mandatory to gets the accounts audited as the N.P. is below 8%.
Please guide me sir, its most urgent.
11 April 2016
No , it is not mandatory to get accounts audited as the total income is not taxable.
.
There is no provision in the Income-tax Act for claiming 3 months depreciation.
.
If you show profit @ 8% then it is deemed that depreciation has been claimed and allowed to you.
.
.
There is no provision in the Income-tax Act for claiming 3 months depreciation.
.
If you show profit @ 8% then it is deemed that depreciation has been claimed and allowed to you.
.
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