Deffered Tax - Depreciation on lease holdland

This query is : Resolved

Monil Shah (Querist)
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04 May 2009 The cost acquiring a Leasehold land is amortised over the period of lease.Hence, Depreciation/amortisation is allowed as per companies act.

But whether the amortised amount (ie depreciation)is allowed as deduction in computation of Income under the Income tax Act? If yes under which sec of income tax

If no, While calculating defferred tax Whether we have to ignore the leasehold land depreciation as per copanies act ?

taxindiaconnect

taxindiaconnect (Expert)
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05 May 2009 In Income tax no deprecaiton is allowed in computing the taxable income of the assessee. So for deferrred tax calculation it becomes a permanent difference, need to be ignored.