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Cost of asset for claiming depreciation

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30 Points Joined May 2021

Cost of asset Rs.75,000. The payment done were Rs.12,000 in cash on the date 20/10/2020 , Rs.13,000 in bearer Cheque on 25/10/2020 , Rs. 45,000 through bank on 27/10/2020 , and  Rs.5,000 in Cash on 28/10/2020. What is the amount to be taken as Cost for calculating depreciation  of asset????

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On 14 November 2021 at 23:01 Report
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10436 Points Joined March 2019
You can claim depreciation on Rs 75000 in your books of accounts but as per section 40A(3) of income tax depreciation will only be claimed on amount paid by bank i.e. Rs 45000.

Hope this helps.
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On 14 November 2021 at 23:31
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Chartered Accountant
24588 Points Joined November 2019
Depreciation should be claimed on 75000 rupees
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On 15 November 2021 at 05:54
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Profession Business
28196 Points Joined May 2017
As per Accounting standard and relevant guidelines , the cost of asset is the sum paid for accquistion of asset whether in cash or kind till the asset is put to use.
As a result of the same depreciation must be calculated on the accquistion cost till it is put to use.
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On 15 November 2021 at 09:55

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