Is Additonal Dep. is allowed to be C/F

Dear friend,

According to section 32 depriciation is allowed only to the extent wdv is present. and unabsorbed depriciation is the depriciation which couldnt be absorbed or setoff with the profit of the business.since as per the problem since the wdv is nil so there is no addtional depriciation which could be carried forward.

Originally posted by : Saharsh 'Hellrokr'
	Dear friend, According to section 32 depriciation is allowed only to the extent wdv is present. and unabsorbed depriciation is the depriciation which couldnt be absorbed or setoff with the profit of the business.since as per the problem since the wdv is nil so there is no addtional depriciation which could be carried forward.

Agree,

Dear Avanish Soni,

COMPLETE DEDUCTION OF ADDITIONAL DEPRECIATION IS ALLOWED IN THE FIRST YEAR IRRESPECTIVE OF THE FACT THAT THE WDV HAS BECOME NEGATIVE

SINCE THE ENTRIRE AMOUNT ADDITIONAL DEPRECIATION IS ALLOWED AS DEDUCTION IN THE FIRST YEAR ITSELF SO NOTHING TO CARRY FORWARD FOR NEXT YEAR(S)

In ur case the Deduction on account of Depreciation (including Additional Depreciation) would be Rs 2,15,000/- and the opening WDV for Next year would be "NIL"

I CAN SUPPORT MY VIEW WITH A SIMILAR QUESTION IN DIRECT TAXES READY RECKONER - BY MR. SINGHANIA