While softwares in general are depreciated at 25%, as an intangible asset, how should a software with expiry of 3 yrs be depreciated? Can linear method be used where every year one third of the asset is depreciated, or should I depreciate by 25% the first two years and in the year of expiry depreciate the balance?
Ok,I am not a registered company, and I file ITR 3 since I am involved in intraday trading and sell some ad space online. Hence, I believe only income tax act applies to me. However, since the software expires in 3 years, should I continue to depreciate the expense after 3 years, or on the 3rd year, depreciate the balance WDV?
for the purpose of Income Tax > WDV shall be applied @ 25 %
for accounting purpose >> you can use SLM / WDV
Hi Naveen, for Income tax, since on third year the software expires and would no more be usable, can't I depreciate the rest of the WDV?
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
