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Minimum amount of deprecition
Dear Sir,
minimum amount of asset should we deprecated in income tax for example i bought a monitor of rs 3000/- that amount deprecated or not . please guide me on the topic ..thanks & regard
vivek jha
Replies (5)
Generally we do not capitalise anything valued below 5,00. You can directly charge it to p&l
*not 500, its 5,000
the concept of 5000/- is not applicable now as per companies act. there is no such minimum asset value as per it act. you need to depreciate.
thanks all of you
I mentioned as 'generally'. And the question refered to income tax , not comoanies act.
There might be no provision in the companies act. However, icai guidline on schedule II clearly states it is allowable to depreciate 100℅ of the value where it is not material in value.
It purely depends on the company practice and materiality of the asset
There might be no provision in the companies act. However, icai guidline on schedule II clearly states it is allowable to depreciate 100℅ of the value where it is not material in value.
It purely depends on the company practice and materiality of the asset
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