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Depreciation on Mobile

Anybody plz  tell me that hw cud treat mobile phone for the purpose of Depreciation under Income Tax Act & Also Under Co. Act

CA Final

It should be considered as Office Equipments for IT Act and Companies Act.


Ya it should treated under office equipment.


Dear Gautam,

Under Companies Act assets costing upto Rs. 5,000 may charged to profit & loss A/c in the first year

If it exceeds Rs. 5,000 then It should be capitalised under Plant & Machinery - General @ 13.91% (WDV)

Whereas no such facility is available under Income Tax Act - i:e It has o be capitalised - Head "Plan & Machinery - General" @ 15%

Needless to say Cost shall also include cost of "First Recharge Voucher, First Insurance, etc", being an expenditure necessary for making the asset ready for use.

Still Learning

office equipments

Accountant Internal Audit

Mobile phones are treated as plant and machinery, and are entitled to depreciation at the rate of 15 per cent.

Tax Advocate (Consultant) I.T and Documentation of Properties

Yes, mobile phones are to be treated under the category "plant and machinery" and are entitled for deprciation @ 15%  under The Income Tax Act



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