Final Student
113 Points
Joined November 2010
Iswar
A proprietor or firm is not required to follow any act(IT or Companies act) for depreciation.It can even follow any rates as it deems fit. Point to be noted is should follow the rates consistently.
If the firm or proprietor is not following the deprecitation as per IT, while calculating the Income under PGBP dep as per books needs to be reversed and dep as per IT should be considered.
Normally for ease of computation and to avoid confusion rates as per IT are followed by most of the people