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Role of Depreciation Under 44ADA & 44AD

SHIV KUMAR (Co-Founder of Sublime Associates) (255 Points)

06 December 2021

If Depreciation is not allowed under 44AD & 44ADA can we take amount of depreciation on Balance sheet or P& L A/c ?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194831 Points)
Replied 06 December 2021

Yes. You are supposed to depreciate the assets as usual, and adjust the amount to P&L acc & BS.

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SHIV KUMAR (Co-Founder of Sublime Associates) (255 Points)
Replied 06 December 2021

Thank You Sir, Have a Good day

Tanuj Chandra Saxenaa (Company Secretary) (7085 Points)
Replied 11 December 2021

For Assessing the True and Fair Value of Asset Depreciation is necessary as per Income Tax Act 1961 So that Proper amount of Depreciation will be Booked or charged to Profit and loss account and same True value of asset must be recorded on the Asset side of Balance Sheet.

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