depreciation against fixed assets

As pe the Companies Act, 1956 Dep. is compulsory and any company should provide for the Dep. an amount equal to or more than the rate prescribed in the  SCHEDULE XIV.

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SCHEDULE XIV

you can carry  Dep  which can not be absorbed during the current year as unabsorbed depreciation and set off in the year which has sufficient profits

HI DEAR,

AS FAR AS INCOME TAX IS CONCERNED, U HAVE TO CHARGE DEPRECIATION IRRESPECTIVE OF WHETHER THE DIVIDEND DECLARED OR NOT. SEC 32 PROVIDES FOR THAT. 

HOWEVER, AS PER COMPANIES ACT, THERE IS NO SPECIFIC PROVISION THAT PROVIDES FOR COMPLUSORY CHARGING OF DEPRECIATION. HOWEVER, IMPLIED MEANING OF THE COMPANIES ACT, 1956 WOULD PROVIDE THAT FINANCIAL STATEMENTS WOULD NOT REFLECT THE TRUES AND FAIR VIEW OF STATE OF AFFAIRS AND OPERATING RESULTS OF THE COMAPNY, IF THE CHARGE FOR DEPRECIATION HAS NOT BEEN GIVEN. COMPANIES ACT MAKES IT MANDATORY TO PROVIDE FOR DEPRECIATION BEFORE DECLARING DIVIDEND. THUS, IF COMPANIES DOESN'T DECLARE DIVIDEND, COMPANIES ACT DOESN'T PROVIDE FOR CHARGING OR NON CHARGING OF DEPRECIATION.  

REGARDS,

MANOJ

Yes Depriciation should be taken & It is carry forward & set off as Unabsorbed Dep in any no of years

@ shafiq

Yes , as per explanation 5 of section 32(1) it is mandatory to claim depreciation.

yes depreciation is mandatory under the law . u cant go without claiming depreciation

depriciation is compulsory