Depreciation

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ravi (Querist)
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02 September 2010 Dear All,

Depreciation should be levied by income tax act or company act. Suppose value of any fixed assets is Rs.1,50,000/- and after some time depreciation is also Rs.1,50,000/-, at the time of closing books. Then we can show that fixed assets in book or not. What are the rates of depreciation applicable under both of the acts? Please help me out.

Thanks & Regards
Ravi Kant

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 September 2010 Fixed assets will be shown in the Gross Block till it is sold or disposed off.

Rate of Dep as per IT Act---

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITRU&schT=rul&csId=4a23cee1-1818-45d6-ab19-f155e08ed789&rNo=&sch=&title=Taxmann

Rate of Dep as per Companies Act---

http://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Company%20Act

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ravi

ravi (Querist)
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02 September 2010 Rate of dep as per IT act : Link is not working.

Please let me know, which rate of depreciation and which method is used in general practice.

Thanks

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 September 2010 In practice WDV method is followed.
In books we provide depreciation as per companies act, but while calculating income from business for income tax calculation we take depreciation as per income tax act.

Link of It dep---

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITRU&schT=rul&csId=4a23cee1-1818-45d6-ab19-f155e08ed789&rNo=&sch=&title=Taxmann

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ravi

ravi (Querist)
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02 September 2010 Thanks u very much Sir,

I did not check properly, actually Rate of Dep as per Companies Act--- Linke is not working.

Sorry....... Please send once again this link

Thanks once again
Ravi Kant

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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02 September 2010 http://www.taxguru.in/company-law/rates-of-depreciation-under-the-companies-act-as-mentioned-in-schedule-xiv.html

http://www.apurvrelan.com/Depreciation%20Chart%20As%20Per%20Companies%20Act.pdf

Check above links.

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