10 November 2016
Dear Sir, i have query regards depreciation rates sir what rates of depreciation should considered for accounts finalisation is it consider rates from companies act or income tax act and sir accounts finalised statement profit and loss profit and it computed profit both are should be difference or should be same and thanking you in advance
11 November 2016
01. For Company, the rates as given in the Companies Act should be used for depreciation 02. For computation of profit under income tax act, you need to add back the depreciation under companies act and deduct the depreciation under income tax act so as to arrive at profit as per income tax act 03. In most of the cases, the profit as per books and profit as per income tax computation are not same.
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