A Pvt. Ltd. Company has no production in F.Y. 2015-16.
And Assets are subject to charge depreciation.
Is depreciation can be claimed?
It has neither turnover nor any purchase?
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Depreciation Allowance
Replies (2)
Yes, depreciation deduction is mandatory. It is allowed, even if the assessee doesn't claim it.
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.
The use of the asset during the previous year may be active use or passive [ie., kept ready for use].
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