01 April 2019
What is the value of an asset as per the income tax act below which the asset can be written off as a zero value asset in the balance sheet of the following year (e.g. assets below Rs. 5,000/-) ? Regards
01 April 2019
There is no section in Income Tax Act,1961 to write off the fixed assets < Rs.5,000/-. However, the provision of Rs.5,000/- was in the Companies Act, 1956 which is also not in force now.
05 April 2019
Thank you Warrier Sir for your reply. Repeating the question of Mr. Raja P M, how and when shall I write down an asset as a "zero value" asset and under which Act / accounting principle ? Please reply.
07 April 2019
There is no accounting principle and Act as regarding the motive to show the asset at a desired value specifically when historical cost concept is being adopted in maintaining books of account.
If the asset is really of no worth to the business it can be shown at 0 value by debiting the cost to the Capital.
Accounting Standard - 28 Impairment Of Assets may be referred for enriching the knowledge.
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