Depreciation method

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Ravi Jhamb

Ravi Jhamb (Querist)
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26 November 2014 May i know the depreciation method applicability into Intangible assets.

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2014 Income tax allows the rate 25% . Reducing Balance Method.
Companies Act has different rates depending upon useful life....3 to 10 years, as per the nature of intangible asset

Ravi Jhamb

Ravi Jhamb (Querist)
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26 November 2014 bt our CA applied straight line method.

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2014 For Income Tax or Companies Act?

Ravi Jhamb

Ravi Jhamb (Querist)
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26 November 2014 Amol, it's simplier understood bcz u said for IT act we will charge 25% written down.

same usewell i am asking about companies act

Amol S Joglekar

Amol S Joglekar (Expert)
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26 November 2014 Oh is it?
Let us make it yet simplier
Whenever depreciation is said to be charged on the USEFUL LIFE/ECONOMIC LIFE of asset, it is PRESUMED to be straight line method.