Depreciation in case of cash system of accounting

921 views 1 replies

 

In case the assessee is following cash system of accounting...then how depreciation will be calculated under Income Tax Act from the date of payment or from the date of put to use?
 
In case suppose advance is paid for fixed assets purchased in april and asset is put to use in october then at which rate depreciation will be calculated? Full rate or half rate...
Replies (1)

Dear Vaibhvi, Depreciation on Fixed Asset is provided from the date asset is put to use. It would be tantamount to cooking of books if you provide Depreciation based on advance payment.

 

 

Section 32 will be read before applying the method as assumed by you.

 

 

 

Thanks

Mihir Doshi


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details