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Depreciation as per co. act

PRIYANKA K. (Working as Sr. Operation Executive) (146 Points)

25 August 2020

if depreciation calculated as per co act is Rs. 31580, however remaining value of block of asset (Computer) is rs 18420... which amount of depreciation is to be booked in books??

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 25 August 2020

If it's Private limited Company, than depreciation is required to be charged as per Company Act, 2013 in books of account of Company. In Any other case you can charge as per IT Act.

Block of assets concept is as per income tax act, So, in block of assets in income tax you have to charge depreciation as per Income tax.

Both are Separate to each other...

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