Doubt
Shejal Jain (Cs executive) (39 Points)
07 October 2015Shejal Jain (Cs executive) (39 Points)
07 October 2015
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 07 October 2015
Depreciation allowance means depreciation is allowable as an expense in the income tax act 1961.
Depreciation is allowable only to the owner of the asset. Asset must be used for the purpose of business or profession.
Depreciation under Income Tax Act is different from that of Companies Act, 1956. Therefore depreciation rates prescribed under
income tax is only allowable whatever the depreciation is charged in books of accounts.
If there are some spare parts/machines and they are not actually used, depreciation is allowable on them because they are used for purpose of business/profession.
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Piyush Tanwar
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Email - imcoolpiyush.tanwar @ gmail.com
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India