can anyone help me regarding the treatment of fixed assets purchased in earlier year but ommited to be recorded in books of accounts. The company now wants to rectify the error and records the assets in the current F.Y. being fixed assets debit to creditors.
Now my query is what will be the treatment of depreciation in accounts and in income tax?
Will the depn relating to earlier years i.e. prior period depn allowable as per income tax?
Prior depreciation is not allowable , however u can add assets in ur books.
| Originally posted by : Palash | ||
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yes the depreciatin on unrecorded assets shal be allowed in incme tax. |
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hey palash plz elaborate ur post... whether prior period depn also allowable in IT ??
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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