Depreciation rate

997 views 4 replies

Sandeep Shirke

Accounts Executive

118 Points Joined July 2014

Dear Sir/Madam, I have one query about depreciation rate. Are there difference in depreciation rate applicable to the income tax and companies act? If yes,then please explain me in brief and also rate for the both income tax and companies act. Thanks.

Replies (4)

Vishwajeet Dixit

CA Practice

21 Points Joined April 2014

Yes the rates for Depreciation are different in Companies Act and Income Tax Act. The companies i.e. Pvt Ltd and/or Public Ltd. needs to provide Depreciation as per the rates specified in Companies Act, whereas all other concerns like HUF, Propeirtorship, Partnership etc needs to provide Depreciation as per Income Tax Act.

For rates you can check the attached sheet

JAINENDRA JAIN

ACS/CA

1668 Points Joined February 2010

yes depreciation rate is different from companies act and income tax act.

rates for companies act : https://www.mca.gov.in/Ministry/latestnews/Explanatory_Statement_alongwith_Schedule_XIV_4dec2008.pdf

rates for income tax : https://www.accounting-n-taxation.com/Depreciation-Rates.H T M L

after charging depreciation cxalculate deferred tac as per as-22.

Sandeep Shirke

Accounts Executive

118 Points Joined July 2014

Thanks a lot Sir......

VIKASH KUMAR JAIN

Audit Executive

711 Points Joined August 2013

Depreciation as per companies act is used for books of accounts of company.However, While companies filling ITR by using depreciation as per IT act.Timing difference occurs, which is known as DTA or DTL for future adjustment.