Please Help: Depreciation
Posted Date : 22-Aug-2012 , 02:55:58 pm | Posted By Dheeraj Kumar
Can we claim 50% of depreciation of an accounting period for shown profit in company.
Eg. A private limited co. has dep. for the year is 2,00,000 and profit before depreciation is 1,20,000. So can we claim depreciation of Rs. 1,00,000(50%) for show profit 20,000.
Eg. A private limited co. has dep. for the year is 2,00,000 and profit before depreciation is 1,20,000. So can we claim depreciation of Rs. 1,00,000(50%) for show profit 20,000.
Category : Accounts | Answers : 2 | Comments : 1 | Hits : 226
Answers
Answer By: CA Satuti Mahajan
You have to claim 100% depreciation, np provision for 50% depreciation.
Answer By: CA VIKAS JAIN
According to sec 28 PGBP income should be computed after considering the availaible dep under sec 32. There has been a judgment of high court according to which to claim depreciation is a mandatory deduction. so whatever amount of depreciation, it should be claim as deduction in a year to which it relates.
Comments
CA Nikhil Bansal
25-Aug-2012 , 11:47:48 pmNo, you have to claim 100% depreciation. in your example you should claim 120000 for depreciation and 80000 will be unabsorbed depreciation.