Depreciation
This query is : Resolved
SVSC SEKHARA SASTRY
(Querist)
09 June 2010
Dear Sirs,
What is the difference between depreciation as per companies act and income tax act.
What is the difference between depreciation as per companies act and income tax act.
Rahul Gupta
(Expert)
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.
Depreciation as per Income Tax Act.
https://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION_2&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Income%20Tax%20Act
Depreciation as per Companies Act.
https://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Company%20Act
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.
Depreciation as per Income Tax Act.
https://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION_2&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Income%20Tax%20Act
Depreciation as per Companies Act.
https://kwatraonline.com/OtherpageTheme6.aspx?TYPE=HORIZONTAL&CompanyID=0&PAGENAME=RATES%20OF%20DEPRECIATION&Parent=Utilities&Current=Rates%20of%20Depreciation%20Under%20Company%20Act
Message likes :
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09 June 2010
WELL EXPLAINED BY RAHUL JI.
CMA RV Padmakumar.A
(Expert)
09 June 2010
Thanks for the link and informations rahulji..
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