DEPRECIATION

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amar preet singh (Querist)
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30 July 2009 AS PER INCOME TAX ACT IF ANY ASSET PURCHASE AFTER SEPTEMBER 50 % DEPRECIATION WILL BE ALLOWED. LET SAY IF DEPRECIATION IS RS. 1000/- THEN ONLY RS. 500/- TO BE CONSIDER. MY QUESTION IS IF NEW BUSINESS STARTED AFTER SEPTEMBER WE NEED TO WE DEDUCT THE DEPRECIATION 50% ON THE DEPRECIATION VALUE. EXAMPLE IF I PURCHASE FURNUITURE ON 01/12/2008 FOR RS. 20000/- DEPRECIATION ON THIS FURNITURE FOR THE WHOLE YEAR IS 2000/- WE NEED TO DEDUCT ONLY RS. 1000/- (50% ) OR RS. 2000/-

Shyam Lal Naik

Shyam Lal Naik (Expert)
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30 July 2009 You are right.

Assets put to use after 30th of September are entitled to 50% depreciation.

Please see that the date on which the asset is put to use is relevent, not the date of purchase.