Depreciation under Company's act

 the value of that asset sholud be Rs. 5000 or less.

Under Companies Act, 1956 it is provided that depreciation rate and method should be such that it wud write off the asset at least upto it 95 % Value.

It means 95 % of value of asset must be depreciated over the life of asset.

as per Schedule XIV in case the cost of asset does not exceed Rs. 5000 the depreciation shall be provided @ 100%. otherwise Schedule XIV will be applicable.