Cash Basis and Depreciation

There is no 'violation' in any legal sense, more particularly from Incometax assessment angle, as whether you maintain your accounts on cash basis or accrual basis you are entitled to depreciation

An Assessee is entitled to depreciation whether he writes his accounts on cash basis or on acrual basis.

However, in my opinion, in case of accounting on cash basis, one cannot pass entries of depreciation.

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Hi, This is true that assessee is entitle to claim Depreciation whether assessee is making entries on Cash Basis on accrual basis for INCOME TAX purposes. But if you making depreciation journal entries in cash basis of accounting then it is contravention of cash basis accounting concept and ur profit figure may be different. Plz Reply Jay 09304270080 CA Final Student

yes u can pass depriciation journal entries under cash basis, there is no contravention of cash basis.

No sir You cann't pass entries for Depreciation & other outstanding expenses in cash basis of accounting. Becausse it will Violate the basic fouda of CASH BASIS.

Yes no cash basis for de preciation

No you can't pass entries for dep. on Cash basis it is a violation of Cash basis Asumption.

Besides You are entitled to charge Depreciation as Per Income tax Act, 1961