Depreciation charged on fixed assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011

depreciation charged on fixed assets it is mandatory or not. if i have purchase car and not charged depreciation it is correct or not correct.

Regards
Amit Kumar Agarwal
Tax Consultants

Guest

Guest (Expert)

07 February 2011 As per incometax act, depreciation is mandatory whether you provide in the books or not

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 February 2011 I agree with Mr. K C Moondra , and want to further add that-

In case car is used for personal purpose only, you need not to charge depreciation.

But whenever you will introduce it as a business asset, it will be deemed that you have been allowed depreciation and as such you will be able to charge depreciation on WDV after calculating depreciation as if allowed.

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