Which is the correct computation of the depreciation amount for a furniture item?
1. Original Purchase Value of the furniture item * 10%
2. Written Down Value (WDV) of the furniture item after deducting depreciation on previous ITR * 10%
2 Replies
CA Ankith Jain
(Chartered Accountant)
(973 Points)
Replied 23 July 2022
As per Section 32 of Income tax act, it is compulsory to compute depreciation on WDV value. Therefore, consider the 2nd point.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 23 July 2022
Depreciation calculated 10% on depreciated value
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