Rate of depreciation of computer in 2nd year

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Prasad A Patil (Querist)
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06 January 2018 Raja sir, you have replied that, to take full 60% in 2nd year, but carried forward value would be more than 60%. For example, if Rs. 100 worth laptop is purchased & held for less than 180 days,then, 30% depreciation is deducted & Rs. 70 would be carried forward. Please let me know, the application of depreciation on Rs. 70 worth laptop in 2nd year.

Renu Goyal

Renu Goyal (Expert)
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06 January 2018 Now the depreciation for 2nd year will be on Rs 70. Note. For A.Y. 18-19 rate of depreciation on computers is 40%

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 January 2018 Seems 40% is for domestic company which has exercised option under sub-section (4) of section 115BA, and for others it is 60%.

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RAJA P M

RAJA P M (Expert)
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06 January 2018 Dear Prasad A Patil., I think you are wrongly understand the value.. As per your example, at the time of purchase and before depreciation the value is Rs. 100. In the first year you calculate (60% / 2 = 30%) 100 - 30 = 70... Now the asset value is Rs. 70 not 100... Are you understand...? We will calculate depreciation in 2nd for the value of Rs. 70. You can apply the depreciation as Rs. 70 * 60% = 42... Now the value of asset is Rs. 28... Note : In FY 17-18 (AY 18-19) the Rate of depreciation reduced 40%. Also consider Our fellow expert Mr. B Chackrapani Warrier's reply... If 40% then we calculate Rs. 70 * 40% = 28. Closing value Rs. 42 in end of the year...

Renu Goyal

Renu Goyal (Expert)
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08 January 2018 I agree Mr. B Chackrapani Warrier depreciation rate is reduced to 40%for domestic companies exercising option of section 115BA but this is for AY 17-18.For Ay 18-19 depreciation rate is reduced to 40% for all. Notification No. 103/2016.