CA Gyati Gupta
(In Practice)
(8427 Points)
Replied 30 December 2013
Depreiation can be seen as gain as u get deduction for the same in income tax, and hence lower your profit resulting in less tax liability....
Bhavin
(Articled assistant)
(104 Points)
Replied 31 December 2013
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 01 January 2014
Hi Bhavin,
Chill dude .. can you explain that in which way depreciation of another person will be your gain??
Depreciation is a notional amount. It never physically moves in or out.
Further, asset value is indeed evaporated over the years and hence depreciation is allowed to be claimed. It is loss indeed but not the income of anyone.
Particularly in assets like cars etc (which don't get appreciated over the years like land, ancient thing), your statement is not valid.
Bhavin
(Articled assistant)
(104 Points)
Replied 01 January 2014
CAclubindia
