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depreciation on livestock i.e cow

29 June 2018

my client has livestock in form of cow. at what precent I should depreciate that under income tax act for tax audit purpose..or count in inventory

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 29 June 2018

As per section 36 (1) (vi) of the Income Tax Act, 1961. It very clearly states that in respect of animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the amount, if any, realised in respect of the carcasses or animals.

As such no Depreciation on live stock. and when they die... just reduce the amount which was added at the time of their purchase

Read more at: https://www.caclubindia.com/forum/live-stock--108692.asp

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A B Kundu (Professional) (1422 Points)
Replied 29 June 2018

Livestocks are not subject to depreciation.

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Rohan Bagra (406 Points)
Replied 30 June 2018

depreciation is not allowed on livestock

Ritik Chopra (student) (8123 Points)
Replied 01 April 2021

Depreciation is not charged on live stock. However, at the time animal died or become permanently useless for such purposes, the actual cost to the assessee of the animals can be reduced from and the amount realised in respect of the carcasses or animals.