Depreciation in companies act

As per Schedule XIV of Companies Act, 1956 the company can calculate the depreciation by using either Straight Line Method or Written Down Value Method. The rate to calculate depreciation is also specified in Schedule XIV. If any addition has been made to any asset during the financial year, depreciation on such an asset will be calculated on pro-rata basis from the date of such addition or upto the date on which such asset has been sold.

dear tarun,

depreciation is systematic  charge on the value of the asset though out its useful life. so you need to charge depreciation for part period you are refering to. and if you are a company then such rates shouldnot be less than the rates provieded in the companies act.

cheers

ganesh agarwala