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Depreciation Basis ready to use or Put to use

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Kishore Nuthalapati

Accountant for multiple small entities

171 Points Posted on 04 July 2023

Hi Sir or Madam

Good day

Could some one please advise

The basis to start depreciation on a particular fixed asset

is it Ready to use or Put to use

Request you to advise

1.As per companies Act
2.As per Income tax Act

Thanks in advance

Replies (3)

Quick Summary

This discussion clarifies the basis for starting depreciation on fixed assets. It distinguishes between 'ready to use', typically from the purchase date under Income Tax Act, and 'put to use', which refers to the date the asset is actually employed according to the Companies Act. The consensus leans towards the asset being 'put to use' as the trigger for depreciation.

sabyasachi mukherjee

Profession

28271 Points Posted on 06 July 2023

It is on the basis of asset being put to use..

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 08 July 2023

1.As per companies Act - PUT TO USE (From the date of using the asset)

2.As per Income tax Act - READY TO USE (From the date of purchase of the asset)