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Can anyone please tell me whether depreciation is treated as a disallowed expenditure and added back to net profit while computation of taxable income?
Replies (13)
depreciation as per books is disallowed and one as per IT provisions is allowed
yes I agree with revanth
yes I agree
DEPRECIATION IS NOT AT ALL DISALLOWED EXPENDITURE. IT IS ALLOWED EXPENDITURE IN CASE OF ALL THE ENTITIES. BUT IN CASE OF COMPANIES DEPRECIATION IN P&L ACCOUNT IS CHARGED AS PER COMPANIES ACT AND INCOME TAX IS CALCUKATED AS PER INCOME TAX ACT HENCE IN CASE OF COMPANIES DEPRECIATION AS PER INCOME TAX IS ADDED BACK AND AS PER INCOME TAX IS DEDUCTED FROM PROFITS.
I do agree with the above replies but want to make an addition that ...... in case of 44AD or 44AE return depreciation won't be allowed as expenditure..
not exactly miss it is instead deemed to be allowed and yu are required to maintain depreciation statements in case if u fall under tax audit requirement in future
I was only talking about depreciation as per Income tax Act,1961
deduction of depreciation cant be claimed u/s 44AD
yes thats what i am saying. it us deemed to be allowed like section 24 a
The answer is yes and after adding back depreciation to net profit, the depreciation allowable under income tax act is to be deducted from net profit.
Yes. After that you need to deduct allowable depreciation from net profit
Thank you
Thank you sir
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