Question

I purchased fixed assets for rs. 15000 and paid in cash whether it is included in the cost of fixed assets and liable to depreciation charge as per income tax act on clear tax

Answer 1

Hence depreciation is not optional but Mandatory under the Income Tax Act of India. Deprecation is a mandatory allowance because it writes off the cost of an asset against profit. The are various methods of calculating depreciation that is chargedagainst income under the Income Tax Act in India.