Depreciation

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Yes, under the Companies Act 2013, you can depreciate assets at a rate lower than specified, provided you offer a management explanation for the chosen useful life. Similarly, the Income Tax Act, 1961, allows for claiming depreciation at a reduced rate. However, for calculating the opening Written Down Value (WDV) for subsequent years, the depreciation calculated at the prescribed rates must be used.

akash agrawal

akash agrawal (Querist)
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07 March 2020 Can depreciation be charged at rate less than the rate specified in the act?

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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07 March 2020 Yes under the Companies Act 2013 you can assume the useful life of the asset different from the prescribed one but you have to give management explanation for that

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 March 2020 Depreciation can be claimed at lower rate as per Income tax act,1961. However, for arriving the opening WDV for the next year, depreciation calculated at the prescribed rates will be considered.

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