depreciation

This query is : Resolved

selva (Querist)
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01 October 2009 i have purchased ( imported ) micro oven 500 numbers for use in our company and used only 250 numbers but balance of 250 is not going to put into use and we will not use henceforth.

can i claim depreciation on that and what is the effect on both under companies act and income tax act

Manish Soni

Manish Soni (Expert)
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01 October 2009 In Income Tax Act, Depreciation can be claimed only if the assets have been put into use during the F.Y. at half the normal rate or full rate depending upon no. of days asset was used.If used less than 180 days then half the normal rate otherwise full rate.

However under Schedule XIV to the Companies Act 1956, depreciation can be claimed on the basis of no. of days the asset has been used.I mean if used even for 10 days, u can claim depr for 10 days only.

regards,
Manish

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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01 October 2009 AGree with versed Manish Sir

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CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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01 October 2009 agree with experts

selva

selva (Querist)
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02 October 2009 my another query is regarding the unused items. is it eligible for dep?
both as per companies act and income tax act

Prashant

Prashant (Expert)
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03 October 2009 Under Section 32 of IT Act 1962 u can claim dep of the machine which is in use.