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Depreciation

Bharathi (Assistant) (87 Points)

09 May 2016

Hi, Can you please explain me the depreciation allowable & disallowable

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Vikas Gupta (Tax Executive) (530 Points)
Replied 10 May 2016

Depreciation is a larger criteria which could not be properly explained in one or two lines. The main concept of allowable/disallowable of depreciation depends upon the rate of depreciation on certain assests and nature & block of assets as specified in Income Tax Act. If depreciation has been charged as per Income Tax provisions, it will be an allowable expense and the rest will be disallowed.

For detailed & proper understanding of depreciation allowed as per Income Tax, pls read section 32 of IT Act,1961.