Depriciation calculation
This query is : Resolved
10 August 2013
Dear Expert
How to calculate Depriciation :-
1. As per Company Act.
2. As per Income tax Act
Please solve my problems
How to calculate Depriciation :-
1. As per Company Act.
2. As per Income tax Act
Please solve my problems
10 August 2013
Depreciation calculation is a lengthy issue.
Briefly it can be said that Both the Acts prescribe different rates for different class of assets or block of assets.
.
Mainly , there are two different methods of providing-
1. WDV Method
2. Straight Line Method.
.
Mostly- WDV method is used. In this method
on the Value shown as Opening Balance (OB)or OB+Purchase you have to apply the given rate.
.
In the Books of account of a Company, Depreciation is calculated as per the Companies Act.
.
Depreciation is separately calculated for the Income Tax Purpose on the WDV amount derived every year and after considering the additions and deletions.
.
.
.
Briefly it can be said that Both the Acts prescribe different rates for different class of assets or block of assets.
.
Mainly , there are two different methods of providing-
1. WDV Method
2. Straight Line Method.
.
Mostly- WDV method is used. In this method
on the Value shown as Opening Balance (OB)or OB+Purchase you have to apply the given rate.
.
In the Books of account of a Company, Depreciation is calculated as per the Companies Act.
.
Depreciation is separately calculated for the Income Tax Purpose on the WDV amount derived every year and after considering the additions and deletions.
.
.
.
10 August 2013
Depreciation calculation is a lengthy issue.
Briefly it can be said that Both the Acts prescribe different rates for different class of assets or block of assets.
.
Mainly , there are two different methods of providing-
1. WDV Method
2. Straight Line Method.
.
Mostly- WDV method is used. In this method
on the Value shown as Opening Balance (OB)or OB+Purchase you have to apply the given rate.
.
In the Books of account of a Company, Depreciation is calculated as per the Companies Act.
.
Depreciation is separately calculated for the Income Tax Purpose on the WDV amount derived every year and after considering the additions and deletions.
.
Briefly it can be said that Both the Acts prescribe different rates for different class of assets or block of assets.
.
Mainly , there are two different methods of providing-
1. WDV Method
2. Straight Line Method.
.
Mostly- WDV method is used. In this method
on the Value shown as Opening Balance (OB)or OB+Purchase you have to apply the given rate.
.
In the Books of account of a Company, Depreciation is calculated as per the Companies Act.
.
Depreciation is separately calculated for the Income Tax Purpose on the WDV amount derived every year and after considering the additions and deletions.
.
12 August 2013
thanks for this advice sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CLOSING STOCK QUERY
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Gst on travel by air for business purposes
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Difff in ais receipts and gst turnover
- Rent claimed on building given on permissive possession basis
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
