Dear All,
What is the diffrence between tax depreciation and book depreciation and in a pvt ltd company ,how does we book depreciation as per company act or as per income tax act.
Thanks to all
3 Replies
Jitendra Vyas
(Commercial Officer)
(178 Points)
Replied 13 March 2012
Tax Depreciation is governed by section 32 of income tax act 1961 which is allowable for calculation of taxable income. Book depreciation is governed by company law which is can be showed in financial statement as per schedule VI of company law it may be possible that book depreciation not be allowed by assessing officer
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 13 March 2012
Dear Sachin,
Book Depreciation calculated as per Companies Act and tax Depreciation calculated as per Income tax Act.
For Books of accounts, we are consider only depreciation calculated as Compnaies Act.
Deprciation Value difference between Comany Act and Income Tax Act called as "Deffered Tax Revenue/Loss".
Thanks and regards,
Baskar
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