09 June 2010
Rules for depreciation is different in both the acts. Both have different schedules for the depreciation rates. The link for the same is given below.
In Income tax, depreciation is provided in full , if asset is used for more than 180 days, otherwise depreciation for half year is provided. However, in Companies Act, depreciation is provided on proportionate basis to the no. of days.
Also, in Income Tax, depreciation is provided at the rates mentioned in the schedule. However, in companies act we can provide the depreciation on the WDV or SLM basis although the rates for the same are also mentioned in the schedule.
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