Depreciation as per slm method

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2015 Dear experts,
Assume i have purchased machinery on 3/12/2015, of Rs. 100000/- and it's useful life is 10 year, however dep. As per SLM is 4% and dep. As per income tax is 15% plz provide me the method of dep. Calculation as per SLM with an example....

Thanks in Advance...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 December 2015 Here the life is 10 years and you have to retain 5% residual value. So you have to depreciate 95% value in 10 years under SLM. So your depreciation rate under SLM is 9.5% i.e 95%/10.

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2015 Dear sir, many thanks for your valuable reply. But i am bit confused in your above reply my confusion is below mention under point...
(1) what's the means of residual value.
(2) why i have retain 5% residual value.
(3) how did you figure out that 5% residual value will be retain,

Plzzzz reply soon....

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