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Depreciation rate
Dear Sir/Madam,
I have one query about depreciation rate.
Are there difference in depreciation rate applicable to the income tax and companies act?
If yes,then please explain me in brief and also rate for the both income tax and companies act.
Thanks.
Replies (4)
Yes the rates for Depreciation are different in Companies Act and Income Tax Act. The companies i.e. Pvt Ltd and/or Public Ltd. needs to provide Depreciation as per the rates specified in Companies Act, whereas all other concerns like HUF, Propeirtorship, Partnership etc needs to provide Depreciation as per Income Tax Act.
For rates you can check the attached sheet
yes depreciation rate is different from companies act and income tax act.
rates for companies act : https://www.mca.gov.in/Ministry/latestnews/Explanatory_Statement_alongwith_Schedule_XIV_4dec2008.pdf
rates for income tax : https://www.accounting-n-taxation.com/Depreciation-Rates.H T M L
after charging depreciation cxalculate deferred tac as per as-22.
Thanks a lot Sir......
Depreciation as per companies act is used for books of accounts of company.However, While companies filling ITR by using depreciation as per IT act.Timing difference occurs, which is known as DTA or DTL for future adjustment.
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