Depreciation on Fixed Assets

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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 Whether 100% depeciation to be charged on fixed assets having actual cost less than Rs. 5000.00 as per Income tax Act, 1961???

SANJAY TALATI

SANJAY TALATI (Expert)
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07 September 2010 No. The provision for the 100% depreciation on the cost of the asset less than Rs. 5000/ is under the Companies Act,1956. Under the Income Tax Act,1961 the Depreciation is on the Block of Assets and the individual item loses its identity except that in the year of acquisition of asset and used for more than 180 days , then Depreciation is allowable for the whole year , else 50 %.