Dep rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 April 2014 Dear sir,

Can I charge depreciation As per Income tax while closing the company book.Is there any mandatory provision related to depreciation.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 April 2014 company act provide the minimum depreciation rate. So you have the option to charge more than that. But you cannot charge less than the prescribed rates. However, also note that method of charging depreciation as per companies act is different from Income tax act. While companies act provide depreciation on the basis of actual no. of days used, income tax act provide depreciation on the more than or less than 6 months basis.

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