Depreciation Allowanace

Hello Anubhaw,

As per section 32 of Income Tax Act, 1961, a assessee is entitled to claim depreciation on fixed assets only if the following conditions are satisfied:

1. Assessee must be owner of the asset – registered owner need not be necessary.

2. The asset must be used for the purposes of business or profession.

3. The asset must be used during the previous year.

Hence if any of the following conditions is not satisfied Income tax shall not allow depreciation.

So such conditions has been mentioned in the companies ACt, hence you can provide for the same.

In addition to saurabh reply

The use of the asset during the previous year may be active use or passive [ie., kept ready for use].