Dpereciation on software

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13 Points Posted on 02 June 2021
Depreciation on computer including computer software is 40% as per IT Act 1961

i want to know what is the depreciation rate on only software.
Whether it will be covered under Intangible assets and rate will be 25% or whether the rate will be 40%

please guide.
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On 02 June 2021 at 16:07 Report
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Quick Summary
This discussion clarifies the depreciation rate applicable to computer software under India's IT Act 1961. Participants confirm that software, when considered part of a computer system, falls under the 40% depreciation rate. While intangible assets typically have a 25% rate, software is generally treated as a depreciable asset at 40%.

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My grammar is 💯 good I
7306 Points Posted on 02 June 2021

As per the it act wdv depreciation must be used

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On 02 June 2021 at 16:21
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CMA
13117 Points Posted on 02 June 2021
I think it would be 40% even for software. Just check if the below definition holds good. "Computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device.
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On 02 June 2021 at 16:23
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Chartered Accountants
2015 Points Posted on 02 June 2021

Rate of depreciation on software also is 40%

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On 02 June 2021 at 17:44
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Learner
2398 Points Posted on 02 June 2021
You should go with 40%
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On 02 June 2021 at 18:26
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13 Points Posted on 02 June 2021
Ok. thank you all.
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On 02 June 2021 at 19:20
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Chartered Accountant
24588 Points Posted on 02 June 2021
40% depreciation is applicable
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On 02 June 2021 at 21:14
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Student
252 Points Posted on 04 June 2021
As per act computer including hardware and software so depreciation on software is 40%
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On 04 June 2021 at 10:13

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