14 December 2012
As per Company Depreciation, my block of assets is completely wiped off in a particular year. However, as per Income Tax depreciation, the block still has some balance. In this situation, 1) should I consider depreciation as per IT Act on the balance as per IT Depreciation Schedule; or 2)should I "NOT consider" any depreciation at all since the asset do not exist in reality; or 3)should I take depreciation as equal to balance available in IT schedule and make the block equal to zero ? What is the correct treatment & why? Where can I find reference on this issue ? Kindly advice.
CAclubindia
