07-02-2009, 01:27 PM
How the depreciation shall be charged, under ITO.2001, on assets which purchased on lease from banks and other financial institutions?
What is the concept of initial allowance? Is it applicable on leased assets?
Suppose a company has paid 300,000/-(25,000 per month although principal and interest varies in each installment but for simplicity we assume it) of principal amount of asset up to the year end and the total cost of asset is 1,050,000/-. At which amount the depreciation shall be charged?
Please quote relevant sections of income tax ordinance in the support of your views.
Best Regards
Awais Aftab
What is the concept of initial allowance? Is it applicable on leased assets?
Suppose a company has paid 300,000/-(25,000 per month although principal and interest varies in each installment but for simplicity we assume it) of principal amount of asset up to the year end and the total cost of asset is 1,050,000/-. At which amount the depreciation shall be charged?
Please quote relevant sections of income tax ordinance in the support of your views.
Best Regards
Awais Aftab
