29 July 2012
How I calculate depreciation on buses in tours & travels business 15% or 30%. Can we take depreciation lees than income tax act in ours books Or in income tax return also.
29 July 2012
1. Depreciation shall be charged @ 30%.
For reference of depreciation rate on buses in tours & travel business, you may refer the circular No. 609 dt 29-07-1991 and Circular No. 622 dt 06-01-1992.
2. In your books, you can claim the depreciation rate as you want (Subject to provisions of Companies Act applicable in the case of Companies). However, for Income Tax purpose you have to compute depreciation as per Income Tax Act only.
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