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Tax relief on depreciation

SASayeda Amal8d ago

When a question mentions that tax is payable after one year, that means tax relief on depreciation should be added on that same year, ie T2?

There was also a question in Kaplan which said tax was payable at the end of the financial year and in the answer it was Time 1. So that means tax relief on depreciation should also be included in Time 1?

Just wanted to confirm.

Thank you once again.

IAW3005IAW3005Tutor5d ago#1

Apologies for the delay in responding……

Yes…If tax is payable one year in arrears (after one year), Year 1 tax relief occurs at Time 2.

If tax is payable immediately at the end of the financial year (no delay), Year 1 tax relief occurs at Time 1.

SASayeda Amal2d ago#2

Please don't apologize. I'm happy that you replied and thank you for helping me out.

My doubt is cleared now. :)

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