Which of the following points should be kept in mind to...

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Which of the following points should be kept in mind to reduce the tax liability while taking a decision to repair or replace an asset?

A. There are some conditions to carry-forward and set-off of business losses

B. If in the relevant previous year less income is expected, it will be better to slow down the pace of repair and renewal of a part of asset in such a manner that it is spread over a number of years. On the other hand, if the income is increased, the repair work can be increased

C. As far as possible a part of the asset should be replaced and not the entire asset. In case of replacement of a part of asset, the cost of replacement is allowed as a deduction in computing the income for tax purpose

D. All of the above

Answer: Option D

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