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Depreciation rate as per IT act

VINOD KUMAR JAIN (SERVICE) (29 Points)

05 December 2008

What will be the depreciation if asset cost is less than Rs.5000 (indian rupees) as per indian income tax.

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9 Replies

Swati P (Chartered Accountant) (173 Points)
Replied 05 December 2008

There is no seperate provision in Income Tax Act for asset costing less than Rs.5000. Rate of depreciation shall depend on the block under which the asset falls.

CA KRIPA HARISH (CHARTERED ACCOUNTANT) (331 Points)
Replied 05 December 2008

i shall agree with what swati said ...depreciation rate is classified on the basis of block of assets and the amount is immaterial...

Amit (Service) (42 Points)
Replied 05 December 2008

No sepret tax rate in income tax,.

as per company act less then 5000/- 100% dep provide depend of products.

amit k singh

Sameer Medhekar (Student) (4140 Points)
Replied 05 December 2008

I also Agree with Swati's opinion

Mr. Aviti Chatterjee (Service) (17 Points)
Replied 05 December 2008

Originally posted by :VINOD KUMAR JAIN
"	What will be the depreciation if asset cost is less than Rs.5000 (indian rupees) as per indian income tax.	"

I agree with Swati. But in most of the large organisation and company, any capital expenditure amounting to Rs 5000/- or less are recorded in the asset register at Re 1/- and rest is charges of to revenue.

heena (Chartered Accountant) (57 Points)
Replied 06 December 2008

Originally posted by :Swati
"	There is no seperate provision in Income Tax Act for asset costing less than Rs.5000. Rate of depreciation shall depend on the block under which the asset falls.	"

Ujjal Datta (Service) (32 Points)
Replied 12 January 2009

Income Tax Act has not provided any separate provision for asset costing less than Rs.5000. It will be followed by block under which the asset falls.

Atul Kumar (CA) (504 Points)
Replied 12 January 2009

Swati is right. However, as per AS - 10 you can write off an asset having value < Rs. 5000.

Kriti (Article Assitant) (106 Points)
Replied 19 August 2013

Can anyone quote that particular section of Companies Act which explains to not capitalise such asset having value less than 5000 or para of Accounting Standard.

Thanks