Depreciation

It's 60% as per section 32

Rate of depreciation on computer including computer softwares is 40% from F.Y. 2017-18
hence on tally software rate is 40%

if the tally software is being purchased without the purchase of computer then what is the rate?

hahahaha. nice question ms arpita. still the rate will be 40% only

depreciation rate 40% for computer software even though you purchased without purchase of computer

correction to be made it's *40%

ok thanks a lot😊

Software being in relation to the computer would be allowed depreciation of 60% reduced to 40% w.e.f. A.Y. 18-19. ( Court Decision)
Note: It would be pertinent to note that Software cost is fully allowed expesiture u/s 37(1) by virtue of CBDT notification.
Hence, It may be more beneficial to claim it u/s 37 (1) as fully allowable expenditure instead of claiming depreciation on it.
Hope this would help you out.

will software not be counted under intangible assets?

Hi arpita jain, it does not matter what u classify Tally software as (tanglible or intangible) under income tax act, depreciation on software is taken with computer hardware as 40%

In ur financials u can classify it as intangible asset (read indas 38 & 16) as "Tally" is not an integral/ necessary part of your computer hardware (ur computer works fine without tally) but that classification wont affect the depreciation rate under income tax act.

 

Nope.. Rate of Computer including Computer software are provided.