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Depreciation

Suresh Pai S (Tax Consultant) (1029 Points)

23 February 2017

Why there is no uniformity in depreciation rates provided in different Acts? What is the hurdle to follow uniform rated of depreciation?

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(Guest)

AS PER INCOME TAX IT IS DIFFERENT AS PER COMPANT ACT IT IS DIFFERENT

FOR ASSET FOR COMPUTER FOR VECHICLE DIFFERENT RATES

FOR IT GO THROUGH SECTION 32

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 23 February 2017

valuation of an asset is an art not a science you would like to have parity between companies act and income tax act? of course your insurance company will not go by your historical cost and depreciation what is stated in your books while settling claim they have their own method of valuation

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 23 February 2017

Insurance company can provide their own depreciation. It is more of a contract between the parties. But what is the hurdle for uniform depreciation rates or methods as per the Acts?