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dep query

Priyanka Mahajan (CA Practice ) (404 Points)

30 September 2010

is dep provided under co act on use basis.

i mean if v use a building on 1.4.10 then we can provide dep. for f.y. 2009-10 or nt.

same question is for income tax also

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4 Replies

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 30 September 2010

Hi Priyanka,

Depreciation under companies act governed by sec 350 and under income tax act by sec 32 . under both this statutes, conditions prescribed for claiming depreciation. both section has one condition same. i.e. assets must be used for the business or profession and also it should be used during the relevant financial year. Since the building is put to use on 01.04.2010, u cannot claim depreciation thereon for FY 2009-2010 since u r not used asset during 2009-10. U will be eleigible to claim depreciation frm 2010-2011

REGARDS,

MANOJ

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CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 30 September 2010

Dear Priyanka,

Depreciation under sec.32 of Income tax puts a condition that the asset must be put to use in te F.Y. for claiming depreciation. In the case of items like generator etc, active use is not necessary. However, in ur case, the asset is put to use on 01/04/2010. SO u cannot claim depreciation for F.Y.2009-2010