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Depriciation calculation

This query is : Resolved 
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(Querist)
10 August 2013 Dear Expert

How to calculate Depriciation :-

1. As per Company Act.
2. As per Income tax Act

Please solve my problems
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
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.
.

.

.
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CA PARAS BAFNA

Profile Image

CA PARAS BAFNA (Expert)
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.
.
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VIKRAM JHA

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VIKRAM JHA (Querist)
12 August 2013 thanks for this advice sir
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