Regarding Depreciation on Assets.

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Dharam Prakash Singh (Querist)
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19 April 2010 Dear Experts,

Please explain your views regarding depreciation on assets in detail. and also describe about applicable rate of depreciation also.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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19 April 2010 depreciation is a big chapter its not possible to provide full details kindly refer sec 32 of IT Act and schedule of depreciation

DEEPIKA GOEL

DEEPIKA GOEL (Expert)
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19 April 2010 Depreciation is the reduction in the cost of assets that has been used for business purpose during the certain amount of usage, passage of time, wear and tear.

Depreciation is mandatory for each organisation irrespective of its nature like firm, company, cooperative organisations. In case of companies, the Companies Act, 1956 prescribed the rates in Schedule VII of the companies act, 1956. For other organisation other than companies, there is no specific rate has been specified in any rules and regulation.

For entities other than companies, the rate specified in section 32 of the income tax act is followed generally.

There are various methods of depreciation but generally WDV (written down value) and Straight line method (SLM) of depreciation is followed. However, according to income tax act, the WDV methods is allowed in all cases except power generation companies.

DEEPIKA GOEL

DEEPIKA GOEL (Expert)
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19 April 2010 I think above detail will serve your purpose and if not, I am giving you one link to learn the calculation of depreciation

https://www.assetaide.com/depreciation/calculation.html

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