Depreciation as per income tax act under companies act 2013

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2015
Dear Experts

Can we take Depreciation as per Income Tax act in respect of non listed company (as the option given by either as per companies act or income tax is governed by old Companies Act 1956 ) as per new Companies Act 2013

Or its Mandatory to take depreciation as per new rates of new companies act 2013 not by income tax act 1961

& what are are consequences if any of non compliance with new rates & following income tax rates

Kindly guide me on this

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 March 2015 It is mandatory to provide depreciation as per Companies Act 2013.
The 2013 Act states that Schedule II will
be applicable as follows:
• For a prescribed class of companies
(whose financial statements are
required to comply with accounting
standards prescribed under the 2013
Act), the useful lives should normally
be in accordance with the Schedule.
However, if a prescribed company
uses a different useful life, it should
disclose a justification for doing so;
• For other companies, the useful life
and the residual value applied should
not be higher than that prescribed.

Non compliance will lead to auditors qualification.

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