Dep. on milk diary business

This query is : Resolved

Pawan (Querist)
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27 December 2017 We have 400 buff. And cows and whose cost us 2cr and want to claim dep and if we are ineligible then plz explain with reason why???

Z (Expert)
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27 December 2017 Depreciation is not available in respect of living animals. How will you evaluate the wear & tear?

The difference between the cost of acquisition of the animal and the value received/receivable at the time of retirement of that animal is your deductible amount u/s 36(1)(vi).

36. (1) The deductions provided for in the following clauses shall be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28—
(vi) in respect of animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the amount, if any, realised in respect of the carcasses or animals;