Dear Experts,
I have obsserved that in the Annual Accounts the depreciation and amortization figure given in the Profit and Loss Statement is different than the Depreciation and Amortization given in Notes to Accounts in the Fixed Assets section. Why is that so?
Calculation of depreciation is vary from annual accounts and notes. Because depreciation percentages as per company books may not accept by income tax authorities for income tax purpose. Company shows depreciation more for reduction of taxes. But I.T. authorities may or may ot accept the such reductions.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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