Computing Depreciation Amount

ITR 159 views 2 replies

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%

Replies (2)
As per Section 32 of Income tax act, it is compulsory to compute depreciation on WDV value. Therefore, consider the 2nd point.
Depreciation calculated 10% on depreciated value


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