prashanth (Article student) (120 Points)
28 June 2012
Can a bank branck charge depreciation on computer peripherals @ 33.33% under SLM basis??
Because as per my knowledge(as per Income Tax act,1962) only depreciation under WDV method is allowed...
CA Prateek Garg
(Consultant)
(149 Points)
Replied 28 June 2012
Depreciation can be charged under any method whether it is WDV or SLM. There is no restriction under income tax act to charged depreciation only under WDV method.
Plz refer section 32 of income tax act.
Sirisha
(Articles CA final student)
(71 Points)
Replied 28 June 2012
For banks there are special rates of depreciation applicable as per RBI guidelines. And Banks are ought to provide such rate of depreciation on computers @ 33.33% on Straight line method only.
ravitheja
(CA Final)
(77 Points)
Replied 29 June 2012
Banks have seperate depreciation rates please check with the branch bank about circulars issued by the head office in this regard
CA Raman Kumar
(job)
(132 Points)
Replied 29 June 2012
Dear,
Charging depreciation as per banking act but, while we calculate income tax on bank earning then we calculate depreciation as per income tax act .
S.ASWATH
(Manager)
(704 Points)
Replied 04 July 2012
@ Sirisha
can you have the depreciation chart for bank if yes pls, provide the same that will be more use ful for all of us.
CAclubindia
