I have My own proprietor ship firm. I want to build a new building for my goods stock. it means that the said building is use for business purpose each and every year. so as per income tax act whether it is necessary compulsory and mandatory to deduct depreciation. in above said building each and every year. or it's not necessary?
Kindly help me for this query investment.idol@yahoo.co.in sudip raja
It seems you are running a business. If your income from business is more than Rs. 180,000 in FY 2011-12 you have to pay tax. For this purpose you have to calculate your income from business. As you are going to use your building for business purpose, you are eligible to claim depreciation in calculating your business income.
Depreciation is mandatory from AY 2002-03 and shall be allowed or deemed to have been allowed irrespective of claim made in the profit & loss account or not.
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