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Deprecieation Not Claim

12 May 2024

Dear Sir, I in current assessment year, I didn't want to claim depreciation in ITR-3, in any legal issues? it is partnership Firm, and in next year would can I claim depreciation? pls.

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5 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 12 May 2024

As per me,

You claim or not but the value of asset is reduce. bcoz, it's used the year and it's got depreciate itself (means asset got lesser life)
So, The value will be decrease...

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Tapas Samadder (536 Points)
Replied 13 May 2024

Yes Sir, value of assets is decreased in my books, but depreciation not claimed in ITR, any legal issues,

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 May 2024

As per my understandings...

It's not issue.
Bcoz, the expense will be claim is our decision. we can skip the expense account.

(It's already increase our income value, means not decreased)

Shubham Patel (student) (81 Points)
Replied 13 May 2024

Depreciation, a Mandatory Deduction [Explanation 5 to Section 32(1)]

With effect from 1-4-2002, it has been explicitly declared that whether or not the assessee has claimed deduction in respect of depreciation (of eligible assets) while computing his total income, such deduction shall be given mandatorily and compulsorily to that assessee. Therefore, depreciation is a mandatory deduction to be given effect to while computing total income and not an optional deduction.

Hyman Frami (Hyman Frami) (22 Points)
Replied 27 May 2024

Not claiming depreciation may lead to discrepancies in your tax filings, potentially raising red flags with tax authorities. Consistency in following the provisions of the Income Tax Act is essential to avoid legal issues.

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