Depreciation

Tax Depreciation is governed by section 32 of income tax act 1961 which is allowable for calculation of taxable income. Book depreciation is governed by company law which is can be showed in financial statement as per schedule VI of company law it may be possible that book depreciation not be allowed by assessing officer

Dear Sachin,

Book Depreciation calculated as per Companies Act and tax Depreciation calculated as per Income tax Act.

For Books of accounts, we are consider only depreciation calculated as Compnaies Act.

Deprciation Value difference between Comany Act and Income Tax Act called as "Deffered Tax Revenue/Loss".

Thanks and regards,

Baskar