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 on assets like computers allowed only after business starts, per Section 32 of Income Tax Act. A query was raised regarding whether depreciation on assets like computers and office equipment is allowed before the commencement of business under Section 32 of the Income Tax Act. The response clarified that depreciation is based on the 'put to use' condition, meaning it can only be claimed once the business starts and the assets are actively used. There is no provision for claiming depreciation during the pre-commencement phase of a business according to Section 32.