Depreciation

This query is : Resolved

Rahul Sharma (Querist)
Follow

24 July 2010
If a Firm incorporate in Dec but start it;s activity on 30.03.2010.

now the firms want to claim the depreciation only for 2 days.

but as per income tax act - the assessee has to charged the dep for less then 180 days or more then 180 days.

kindly advise, whether the firm can charged the dep only for 2 days.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

24 July 2010 as per companies act 2day depreciation to be shown in accounts.
As per income tax act depreciation can be claimed for 6 months.( i.e. half the rate of actual rate of depreciation)