Depreciation

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MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
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29 July 2011 What is difference between depreciation as per income tax & depreciation as per Company Act.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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29 July 2011 There are differences in the rates of depreciation. While calculating the taxable income, the depreciation as per companies act is disallowed and the depreciation as per the income tax act is allowed.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 July 2011 Depreciation for income tax purposes has to be calculated as per the rates given in appendix-1 to rule 5 of the Income tax Rules,1962 whereas for corporates , for accounting purposes, depreciation is to be calculated as per the rates given in schedule XIV of the companies Act,1956.

MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
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29 July 2011 Thanks sir,

but which side is higher whether as per income tax act or As per company act.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 July 2011 Can't say precisely. Depends on the category of asset, method of depreciating the asset viz., straight line method / written down value method etc.

MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
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29 July 2011 Thank you very much sir,

sir i am working in pvt. ltd.co. As Accounts executive,which turnovr comes to near about 36cr. Now my Management is asking me to prepare Monthly Income Statement of company, which i had never done before, how it is to be stared,also plz tell me whatever MIS reports has been prepared by me is absolutely correct or not, what kind of steps to be followed to make perfect monthly income statement of pvt.ltd. co. its very much urgent, please help me sir.

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