Depreciation on machinery

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Can we claim depreciation in the year of sale of Machinery {both Companies Act and Income Tax Act}

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In case of Income tax Act , Depreciation is allowed if the asset is held by the assessee on 31st March of the Financial Year, therefore no depreciation will be allowed in the year of sale of asset, with a few exceptions

 

In Case of Companies Act , depreciation is allowed on pro rata basis  i.e. on proportionate basis

therefore depreciation for proportionate period will be available in year of sale


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