Depreciation rate as per IT act

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

Replies (9)

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.

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

No sepret tax rate in income tax,.

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

amit k singh

 I also Agree with Swati's opinion

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.

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. "


 

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.

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

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


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