Depreciaiton

Depreciation can be charged for the whole time when the asset was put for use............here in the case it would be at normal prescribed rate for whole year...........as the running period was throughout...........

What will be the depreciaiton when the business was in existence for only 1 month (i.e the month of April) and  thereafter the business was wounded up

Depreciation should be provided for one mnth only as per companies act,1956

Ya, u are right that depreciation should be provided for 1 day only, but what shall be its impace in income tax

Hi

In your case you need to provide depreciation as per income tax for the whole year .

Well...if the asset was purchased and used in the same yr. for less than a period of 180 days.........then it is to be charged only upto 50% of normal rate allowed,........

If the asset was used in previous yrs.  then full dep.. can be charged