26 September 2012
This is my third post relating to taxation of trust but still didn't got the satisfactory answer.
Suppose a trusts purchased a fixed asset say for Rs. 5,00,000, depreciation would be charged @ 10%. Now which amount is a application of income while computing the income as per IT Act Rs. 5,00,000 (fixed asset cost) or 5,50,000 (fixed asset cost & depreciation on it) Some says it would be 5,00,000 and some 5,50,000.
26 September 2012
Application of income would be 500000 as no where mention tnat depreciation should be added first as it is reductin in value of assets as time pass.
26 September 2012
Application of income would be 500000 as no where mention tnat depreciation should be added first as it is reductin in value of assets as time pass.
CAclubindia
