Capitalisation and Depreciation

you can depreciation for FY 2024-25  wold typically be calculated for the period the asset was used for business from 20 March to 31 March.

Impact of Reducing Grant from Assets Basket: Depreciation: If the grant amount is reduced from the asset's cost ( as per AS 12/Ind AS 20), depreciation would be calculated on the net cot (cost of asset minus grant).

Tax Audit: Ensure compliance with tax laws.

Creating Deferred Liability and Amortizing Grant over 10 years:

Depreciation: Depreciation would be on the full cost of the asset. The grant amortization (over 10 years as income) does not directly impact depreciation calculation.