DEPRECIATION AS PER INCOME TAX OR AS PER ACCOUNTING

This discussion clarifies how to handle depreciation when accounting practices differ from income tax requirements. It addresses whether to charge depreciation on the written-down value (WDV) or book value, and how to manage discrepancies between unabsorbed depreciation for tax purposes and your company's books. The advice suggests charging depreciation on a WDV basis in the books, aligning with income tax rules, and transferring any opening balance mismatch to the capital account, in accordance with both the Companies Act 2013 and the Income Tax Act 1961.