2. Depreciation allowance an allowance for loss due to depreciation Depreciation is available on tangible as well as intangible assets. Condition 4 It should be used during the relevant previous year. Condition 3 It must be used for the purpose of business or profession . Condition 2 Asset must be owned by the assessee Condition 1
3. Asset must be owned by the assessee Registered ownership is not necessary . Depreciation in case of any other lease Capital expenditure in a building taken on lease Depreciation in case of higher purchase
4. Asset must be used for the purpose of business or profession Active versus passive user Asset used partly for business purposes Residential quarters
9. WRITTEN DOWN VALUE [SEC. 43(6)] Find out the depreciated value of the block on the April 1, 2005. To this value, add “actual cost” of the asset deduct money received/receivable
10. EXCEPTIONS If in the first year in which an asset is acquired,it is put to use for less than 180 days. 5 In the case of succession ore amalgamation or business re-organization or demerger. 4 In the case of imported cars 3 If the block of assets is empty or ceases to exitst on the last day of previous year (though written down value is not zero) 2 If the written down value of the block of asset is reduced to zero,though the block is empty. 1
11. If the written down value of the block of asset is reduced to zero, though the block is empty.
13. imported cars Depreciation available Depreciation not available The purpose of business or profession in India Depreciation available Depreciation available The purpose of business and prefession outside India Depreciation available Depreciation available The purpose of running it on hire for tourist Imported car is used for Imported car acquired after march 31, 2001 Imported car acquired after February 28,1975 but before april ,2001
14.
15. when an asset is put to use for less than 180 days in the year of acquisition – It is put to use for a period of less than 180 days. 2 If the asset is acquired during the previous year. 1