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Income tax

Souniya (IPCC) (110 Points)

11 September 2013

Hi,

I would like to know the issue raised in case my client charges depreciation according to Income tax rules rather than Companies Act , 1956 rules.

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Baburao Ganpatrao Apte (Articled Assistant) (35 Points)
Replied 11 September 2013

Originally posted by : Souniya
	Hi, I would like to know the issue raised in case my client charges depreciation according to Income tax rules rather than Companies Act , 1956 rules.

I didn't get your issue exactly. But, what I know is that the client can charge depreciation on the basis of Companies Act's Rules. But, as auditors, when we prepare the 3CD report, we have to calculate it as per the Income Tax rates. And, in the final Statement of Income of the said client, the depreciation provided in the client's books of accounts will be disallowed ,and the depreciation on the basis of Income Tax Rules will be deducted. This is what I have learnt so far .Good luck :)