Depriciation on Leased assests
This query is : Resolved
29 April 2010
my co. has some leased assests on which we are claiming depriciation under companies act.while no depriciation has been claimed under incometax. now i want to know wther the same is a allowable expenses under 32(1)of income tax or not.
CA Sanjay Jha
(Expert)
29 April 2010
No.
Under IT act depreciation u/s 32 on leased assets are not allowed. because u have to allowed leased expenses.
Under IT act depreciation u/s 32 on leased assets are not allowed. because u have to allowed leased expenses.
29 April 2010
the lease is in the nature of Financial Lease as per AS-19. i would also like to know that is AS-19 is valid in income tax or not.
29 April 2010
under income tax act, depreciation is taken by leasor only.it won't affect that it is operating or financing lease. as the CBDT holds that the accounting standard will not be relevant for tax purposes. AS-19 is considered only for proper accounting of lease.
CA Ashok Kumar Sahu
(Expert)
30 April 2010
AGREE WITH DOSHIJI
CA Ravi Sisodia
(Expert)
30 April 2010
under income tax act depreciation is not allowed on leased assets.
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