Depreciation

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SVSC SEKHARA SASTRY

SVSC SEKHARA SASTRY (Querist)
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09 June 2010 Dear Sirs,

What is the difference between depreciation as per companies act and income tax act.

Rahul Gupta

Rahul Gupta (Expert)
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09 June 2010 Rules for depreciation is different in both the acts. Both have different schedules for the depreciation rates. The link for the same is given below.

In Income tax, depreciation is provided in full , if asset is used for more than 180 days, otherwise depreciation for half year is provided. However, in Companies Act, depreciation is provided on proportionate basis to the no. of days.

Also, in Income Tax, depreciation is provided at the rates mentioned in the schedule. However, in companies act we can provide the depreciation on the WDV or SLM basis although the rates for the same are also mentioned in the schedule.

Depreciation as per Income Tax Act.

http://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION_2&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Income%20Tax%20Act

Depreciation as per Companies Act.

http://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Company%20Act

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