Deprecition claim

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maninder (Querist)
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06 July 2015 whether a IT sector Indulge pvt company with a objective to pay tax in any FY avoid depreciation deduction in; profit and loss a/c irrespective if he buy assets like computers and software because if he claim depreciation then its profit turn to loss

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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07 July 2015 Even if you don't claim it, it will be considered that you have claimed it. In other words the WDV of the asset will be reduced for claiming depreciation of the next year whether you claim depreciation or not.
So don't claim depreciation if you don't want to and show taxable business income instead of loss but the depreciation will be treated as claimed for the purpose of tax. For example, computer & software cost is Rs.100 & depreciation rate is 60%. The first year's depreciation is Rs.60 this will be treated as given whether claimed or not. In second year you can claim depreciation only on Rs.40.