Depreciation Issue...!!!

since the asset is put to use in April, 2009, therefore, be eligible for depreciation in A.Y. 2010-11(F.Y.2009-10)..... at 100% rate

Yes, Depreciation  is eligible in AY. 2019-11 at 100% rate.

Thanks Vijay...but can U give any reference for the same pls..

thats fine sir, but will the asset be eligible for depreciation in A.Y. 2009-10 (F.Y. 2008-09)..

No. Since the asset has not been put to use, no depreciation can be claimed for AY 2009-10.

However, if the value of the asset depreciates by effluxion of time, you can claim depreciation for AY 2009-10

I think this will make it clear, the 50% chargebility is applicable only in the previous year in which the asset is purchsed if the asset is put to use for less than 180 days. But from the next year the chargebility of deprecation will be 100% whether it is put to use or not. Because in the defination of deprecation it is clearly mentioned that the deprecation will chargeable by eflux of time also, in that case the asset is not put to use then also it is liable for deprecation.

HI..

I am surprised as to how this small concept became such a big one that everybudy got confused. I Hope to clarify this issue.

See, as far as chargeability of depreciation is concerned, there is no term called date of Acquisition. You need to consider only date of PUT TO USE. from there on you need to calculate the number of days the asset is used during the year.

However, Sec 42(1) deals with Actual cost. This section need to be considered while taking COA . If a asset is put to use much after date of Acquisition, the cost will be reduced by the amount of Dep for that period as if the asset is being used since inception.

Hope this clarifies your doubt.

Regards,

Hello,

I want to Know whether UPS Systems can be treated as part of computer system eligible for depreciation under IT Act. Please provide me case Laws which are relevant to this issue

 Since the asset is put to use from April 2009, then he can avail 100% depreciation in the Assessment year 2010-11 i.e, Financial year 200-10.

Thank You

But the issue relating to the Asst. Year 2006-07