how does Non profit seeking organization claim depreciation. please tell treatment in income expenditure A/C as well as Tax
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 12 December 2012
If the non-profit organization is an company then the depreciation shall be calculated as per the rates laid down in Schedule XIV as per SLM / WDV method. while computing the taxable income the depreciation as per Co's act shud be added & deprn as per I-T shud be dedcuted.
if the NPO is other than company such as Trust, then depreciation shud be calculated as per the rates laid down under the I-T Act. The depreciation charged will be be considered as application of income in compuitng the 85% application of income.
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