Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2012 i don’t know how to calculate the depreciation under companies act and income tax act and also give me information depreciation percentage both act

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

12 January 2012 In companies act depreciation is calculated based on no. of days whereas in case of Income Tax act the same is calculated based on whether used for more than 180 days or less. If used for less than 180 days then depreciation to be charged at half the rate.

For rates visit rrfalod.com utilites rates of depreciation under companies act and income tax act.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Expert)

12 January 2012 Also in companies act when asset is sold during the year then depreciation can be claimed for number of days for which the asset has been used.

While in Income Tax Act, depreciation is not allowed even if the asset is sold on last day i.e. 31st march.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2012 Thanks for your prompt reply .