depriciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2009 can we provide depriciaton on asset which is purchased long back(i.e say 2 or 3 years back)?

if, yes. with out using asset and with out getting any revenue from that machine how can we? (matching principle)

if,no. even though the asset not used in business, because of technology absolescence it will loose its value. then what is solution for it?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

01 November 2009 If you have started using the machinery now you can very well claim depreciation.

It should be used in your business or profession, the generation of income is secondary, still you can cliam deprecaiation.

If the machinery has been kept idle and since it now obsolete you can claim loss on sale of asset at the time of sale or if realisable value is nil the entire amount you can write off as loss. But you should have proper working papers with you so that when assessing officer issues notice you can explain him properly.