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yasaswi gomes (My grammar is 💯 good I)     19 September 2021

Tax amortisation


All expenses like site preparation, installation and labor charges are treated as cost of machinery and depreciated. Does tax depreciation include these capitalised expenses as part of cost of machinery?

Some intangible assets are capitalised and amortised. Is this amortisation tax deductible from taxable income as per IT act?


 2 Replies


JGM (Knowledge Sharer)     23 September 2021

Expenditure incurred on capital asset till the time it is put to use should be capitalsed. The depreciation on the same is allowed. Any expenditure incurred post the asset is put to use should be expensed off.

The amortisation / depreciation as per IT Act will only be allowed

1 Like
yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     24 September 2021

This is super.. I had this doubt from a long time and your answer hlp d me get rid of this depreciation accounting doubts

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