Regarding Depreciation

Rajesh Kumar jakka (Querist) 29 January 2010 This query is : Resolved
Dear Expert,

please let me know,

if i used an asset for 6 months in a year and for the rest of 6 months, the asset is idle.

is there any requirement to compute the depreciation for the entire year or can i compute the depreciation only for such 6 months?

the asset is purchased 5 years ago.

by
raj

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A V Vishal (Expert) 29 January 2010
Under what act, is it under companies act or under income tax act you seek advise

Bhumik Dave (Expert) 30 January 2010
plz. clrfy the que.

Guest (Expert) 30 January 2010
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Kumar Thadhani (Expert) 31 January 2010
I think you had raised your queriesunder Income-tax Act since uner the Income-tax Act it is obligatory for person/s to maintain the books of accounts in a way specific way/s nence even if your assest is remainind idle for six month you are entitled to claim the depreciation for the whole year at the rate specified under the rules or act provided as you has said that your asset that had purchased is five years old and is appearing in your books of accounts as old asset.

Rajesh Kumar jakka (Querist) 01 February 2010
Under Companies Act only.

soumitra basu (Expert) 01 February 2010
It is obligatory on your part to claim depreciation both under companies act as per respective schedule and as per income tax act as per rule. It is immaterial whether the asset was put to use or idle.

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