Depreciation rate??

Hello,

Please tell me the rate of Depreciation on Software according to Company's Act and Incometax Act.

Replies (7)

 

Income Tax Act - WDV Method - 60%

Companies Act - WDV - 40% & SLM - 16.21%

In ma opinion, the rate as per income tax act is correctly answered by Manika

but for accounting purpose, i thnk for software, AS-26 is applied........

   (i.e to be amortised in 3-5 years).............

 

plz correct me if m wrng..........

 

Rate as  per income tax is 60%

As per companies act 40% (wdv)

                                  16.21% (slm)

But in schedule XIV, isnt dat  for Computer???????

and not for software?????/

I agree with CA. Sumit.

As per I.T Act, the rate is 60%. But as per companies act, the rate of 40% is applicable if software is installed in computer and necessary for its operation.

But if software is purchased idependently (Application software), AS-26 (Intangible Assets) is applicable.

 

Correct me if I am wrong.

Originally posted by : Anubhav

I agree with CA. Sumit.

As per I.T Act, the rate is 60%. But as per companies act, the rate of 40% is applicable if software is installed in computer and necessary for its operation.

But if software is purchased idependently (Application software), AS-26 (Intangible Assets) is applicable.

 

Correct me if I am wrong.

can the same be applicable for purchase of Antivirus software.

Please guide.

I read the AS-26, and agree with sumith

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