25 July 2008
Under Income Tax Act, the depreciation will be calculated taking into consideration the criteria of 180 days. (i.e. even if the asset use is only for 1 month then also we have to provide half years depre.) Is there any provision similar to this in the Companies Act for calculation of depreciation (i.e. condition of 180days). Or can we depreciate the asset for the period it was in use? i.e. if the asset is in use for 4 months, then can we calculate the proportionate rate for 4 months?
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