There is no seperate provision in Income Tax Act for asset costing less than Rs.5000. Rate of depreciation shall depend on the block under which the asset falls.
What will be the depreciation if asset cost is less than Rs.5000 (indian rupees) as per indian income tax.
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I agree with Swati. But in most of the large organisation and company, any capital expenditure amounting to Rs 5000/- or less are recorded in the asset register at Re 1/- and rest is charges of to revenue.
There is no seperate provision in Income Tax Act for asset costing less than Rs.5000. Rate of depreciation shall depend on the block under which the asset falls.
Can anyone quote that particular section of Companies Act which explains to not capitalise such asset having value less than 5000 or para of Accounting Standard.