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Depreciation

Vikas (Accountant) (42 Points)

10 December 2016

Sir,

Is it mandatory to claim depreciation under the income tax act 1961? Can I pay income tax without claiming benefit of depreciation under income tax act, 1961?

Regards,

Vikas

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3 Replies

CA Aditya Lahoti (Chartered Accountant) (380 Points)
Replied 11 December 2016

Applying Section 32 of Income Tax Act, 1961 is compulsory even if you don't apply this section and file return and your case is selected for assessment then AO will apply sec 32 as it is mandatory to apply sec 28 to 43 while computing income under the head P/G/B/P.

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Prasanth (CA Final Students) (57 Points)
Replied 11 December 2016

Depreciation is only non cash expenditure can be allowed as expenses under section 32 and it is compulsory to charge depreciation when the asset is put to use