What if firm do not want to claim depreciation in itr-5, but wants to carry forward fixed assets
Menu
Not claim depreciation
Replies (4)
Quick Summary
No, you can not skip depreciation, as per section 32 of the income tax Act and it is allowable deduction if asset is used exclusively used for business purpose , Also depreciation is mandatory as per accounting standards 10 (PPE) in the books of accounts, which is applicable to non corporate entities, so as per my opinion file ITR5 as per the Income tax law .
Take more opinion on this.
Please correct deduction meaning ( mistake due to oversight ), it's allowable expenses while calculating taxable profit. If the asset is exclusively for business purpose.
Also one more thing I would like to add above, is that asset must be Owned by assessee, in addition to use for business purpose.
You cannot skip or opt-out of depreciation under the Income Tax Act. Even if an assessee fails to claim it explicitly, the law mandates that the Written Down Value (WDV) of the asset block will still be reduced by the prescribed depreciation amount for future years.
Recent Topics :
- Input tax claim related
- User not found in MCA portal
- GST RATE ON FILM PRODUCTION
- Section 54
- Why are foreign investors suddenly buying Indian s
- TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI &
- Query to Tax Garden tax consultant
- Subject: Urgent Assistance Required – TRACES
- Claiming business re-imbursements while filing GST
- E-waybill 14 Digit Numbring
Related Topics :
CAclubindia
