ITR 4- CMPUTATION OF INCOME FROM BUSINEES

In computation of Income first we have to add back the depreciation provided in the books and deduct the depreciation as per income tax

Hi Neha,

See in computation of Income from business or profession, depreciation as per IT rate is allowable.

Generally all claims depreciation as per IT act  in books except Companies. Companies required to claim depreciation as per Schedule XIV rate of companies act 1956 so company require to add back depreciation as per books and required claim depreciation as per IT Rate.

Hope Its Clear.

hi neha ,

while computing the net profit in Sch BP of ITR , in Pt. 11 u hav to first disallow the depreciation that has been debited to P & l , and then in pt. 12 u hav to tak the Depreciation as per it act , and that that wil giv ur np. if the depre debited in p& l is the same as per it act , then also u first need to disallow the same in pt . 11 & then allow the same in pt . 12.

i agree with all of the above