Provision related to depreciation as per u/s 32 of Income Tax Act

[CA Rachit Agarwal]

Whether depreciation is allowed pre-commencement of business such as computers, office equipment. As per Section 32, depreciation is allowed on the basis of put to use, not on the basis of commencement of business kindly clarify.

[Surender Gupta]

You query is not clear. Did u purchased the computers and equipments before commencement of business? Section 32 puts the condition of put to use. Therefore, when you start your business and starts using the assets, you can start claiming the depreciation as per the provisions of section 32. There is no concept of depreciation during the pre-commencement of business as per section 32.

AI Summary

Depreciation entitlement: assets qualify for allowance only once put to use; not during pre commencement period. Depreciation is allowable only when an asset is put to use in the business; assets purchased before business commencement do not attract depreciation. Taxpayers must begin claiming depreciation in the year the asset is first used for business purposes, not during any pre commencement period.