Depreciation

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janani (Querist)
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19 September 2016 Dear Sir/ Mam,

I have required a clear Idea about the Depreciation as per schedule II with Useful Life Provision is going to be Nil for FY 2015-16 But as per Income Tax Act for the same asset the Depreciation is to be in Continuity Stage for the same year . Please Clarify this issue with any Case Laws.

Bharath

Bharath (Expert)
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20 September 2016 Book depreciation and income tax depreciation do not go hand to hand because book depreciation is based on useful life concept and IT depreciation is based on block of assets concept with fixed % of depreciation. Due to the differences between these two, we create Deferred tax asset/liability based on the differences between the book value of assets as per Books and IT Act. This is a bit technical and involves some kind of practical study. In case you need more information, please refer to DTA/DTL topics in CA Club.