Depreciation simplified

yasaswi gomes (My grammar is 💯 good I)   (7068 Points)

28 October 2021  

For example, A machine costs 100000, residual value 5000 and life of 30 years. According to the company 9.5% is the rate and 15% in Income tax Act.

Depreciation under companies Act 9500
Depreciation under Income tax Act 15000
Difference 5500
Deferred tax liability 1716