09 July 2009
Depreciation as per schedule xiv of the companies act,1956 may be followed while preparing financial statements of Companies. For calculating taxable income of companies depreciation debited in p/l account as per co's act will be added to the profit and depreciation calculated under income tax act,1961 is deducted. This adjustment is being done since depreciation rates under income tax act and companies act are different.
CAclubindia
