12/01/2019

Provision of An Asset put to use for less than 180 days in the year of acquisition. ( Author - Admin )



When an asset is put to use for less than 180 days in the year of acquisition :

If any asset falling within a block of assets is acquired by the assessee during the previous year and it  is put to use for the purpose of business or profession for a period of less than 180 days in that previous year, the deduction in respect of such asset shall be restricted to 50 per cent of the amount calculated at the percentage prescribed in the case of block of assets comprising such asset. The aforesaid provision is applicable if the following conditions are satisfied : 

1. If  the asset is ”acquired” during the previous year. 

2. It is put to use for a period of less than 180 days. . . 

When the two conditions are satisfied depreciation shall be restricted to 50 per cent of the amount calculated at the percentage prescribed .

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