23 June 2008
hi to all, i want to know the complete treatment of assets purchased below Rs.5000, whether we have to capitalise the same or expensed off within a year. and wat would be its treatment under Income Tax act,1956
24 June 2008
As far as The Companies Act is concerned, Depreciation on Fixed Assets of Rs 5000/- and below shall be provided @ 100% in the year in which it is acquired.
But, In Income Tax Act, there is no where mention of any such provision. Hence, it is to be treated on par with any other assets
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