Depriciation

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Sandeep (Querist)
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06 October 2008 Hiiiii,Can Anyon tell me .How can i calculate Depreciation by Income Tax Maethod on Monthly Bases, & how depreciation is been provided after 180 days in income tax act.

Thanks if any one can help me out.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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06 October 2008 In case the assetsis put to use for less than 180 days then charge depreciation at rate which is half of the rate prescribed for the full year.

Depreciation is provided at the close of the year when P & L is drawn. However, for MIS purposes it may be calculated in advance and apportioned on the months for which the same has been calculated.

Sandeep

Sandeep (Querist)
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06 October 2008 Thanks for reply ,Just clear one more thing,

Suppose-The value of furniture & Fixture as on 30th Sep-08 is 32930 .so whats the depreciation for that month & now in oct month whats the formula.Please reply

Sandeep

Sandeep (Querist)
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06 October 2008 Suppose-The value of furniture & Fixture as on 30th Sep-08 is 32930 .so whats the depreciation for that month & now in oct month whats the formula.Please reply

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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06 October 2008 1)You have to clarify whether it is for IT assessment or book.
2)If books what is the method you follow St line or WDV.
3) The "value" of furniture-is it cost or WDV has to be clarified.
4) What was the balance of cost in the beginning and what was the WDV in the beginning?

Sandeep

Sandeep (Querist)
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06 October 2008 This depriciation is just for MIS Reporting.

& the method use is Staright Line Method.

The value of furniture is 32930 after providing depriciation in last months.

Sandeep

Sandeep (Querist)
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06 October 2008 Suppose-The value of furniture & Fixture as on 30th Sep-08 is 32930 .so whats the depreciation for that month & now in oct month whats the formula

This depriciation is just for MIS Reporting.

& the method use is Staright Line Method.

The value of furniture is 32930 after providing depriciation in last months.

Sanjay Sharma

Sanjay Sharma (Expert)
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06 October 2008 In MIS you can follow your own mentod. no need to provide for half year for purchase made after 1st Oct(<180days).
If you want to go for Depreciation as per Income tax than there is no any option to calculate monthly depreciation. You have to calculate depreciation on block value concept.
You have to calculate the income tax as per year end calculation, and than you can prorata divide in seven month to calculate upto Oct 08.
in your example You have to calculate full year dep for WDV as on 30th sep, and half year dep for purchase after 1st Oct.
Dep upto Oct can be calculated prorata basis(7/12)

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