1. Treatment for current year depreciation: Step1: Claim deduction of current year depreciation from business to which it relates. Step2: Deficiency in step1 can be set-off against the profits or gains of any other business of assessee. Step3: Deficiency in step2 can be set-off against any other head of income of current previous year. Step4: […]
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Applicability: It is applicable to assesses engaged in the business of manufacture / production of any article or a thing. Eligible Asset: Any new machinery or plant acquired and installed after 31-03-2005. Ineligible Assets: Ships and Aircrafts Any machinery or plant which, before installation by the assessee, was used either within or outside India by […]
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Condition: In order to claim depreciation, the assessee has to fulfill the following conditions- Ownership: The asset shall be owned by the assessee. Used for business purpose: The assets should be wholly or partly used for the purpose of business during the previous year. Block of assets: It shall fall within the classification of the […]
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Condition: The building should be used for the purpose of business or profession during the relevant previous year. Deduction: The following expenses are allowed as deduction- Rent paid as tenant. Current repair expenses towards the premises. Land Revenue or local rates or municipal taxes. Insurance premium paid in respect of damage or destruction of the […]
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Items Chargeable Under the Head Business or Profession (Section 28) Sec. 28 Income under the head business or profession (i) Profits and gains of business or profession. Speculation business shall be treated as distinct and separate from other business as speculation losses to be treated separately. (ii) Compensation or other payment for Termination or modification […]
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