dep. on software

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mayur (Querist)
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04 January 2010 what will be the rate of depreciation on software?
Is it 25% or 60%
which will be most approoriate answer plz?& explain

Ghanshyam T Jha

Ghanshyam T Jha (Expert)
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04 January 2010 Depreciation rate will be 60% as per Income Tax, bcoz Computers including computer software and computer software means any computer programme recorded on any disc, tape, perforated media or other information storage device.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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05 January 2010 Another view of the High Court is given below.
Payment made for purchase of software,though is an enduring benefit,does not result in acquisition of any capital asset and it merely enhances the productivity or efficiency and hence, has to be treated as revenue expenditure.
CIT Vs. Southern Roadways Ltd (2008) 304 ITR 84(Mad).

Ghanshyam T Jha

Ghanshyam T Jha (Expert)
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05 January 2010 I agree with you but that decesion was taken on upgradation of Computer Software and the finding of fact was that the expenditure was incurred only for improving the efficiency of the existing system.

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