Questions regarding Depreciation as per Income Tax

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Mr. AB

Self-employed

90 Points Posted on 17 January 2022

On the Income Tax website, I see various rates of depreciation (for income-tax).
I also see a section "Depreciation under Companies Act, 2013" where it talks about "useful life" and scrap-value of assets.
1. I'm a self-employed, not a company. So while accounting for ITR filing purposes, should I account for useful lives of assets? or should I keep mentioning the WDV in ITR depreciation schedules each year as along as assets are practically useful in the business?

2. Should I really have to take "scrap-value" into account while doing the calculations?

3. As per income tax, if we can classify a software that is not an integral part of the computer (ie., application software) as intangible assets, then why the page does not mention "software" under intangible assets?

Ref. link:
https://www.incometaxindia.gov.in/_layouts/15/dit/mobile/viewer.aspx?path=https://www.incometaxindia.gov.in/charts%20%20tables/depreciation%20rates.htm&k=&IsDlg=0

Replies (2)

sabyasachi mukherjee

Profession Business

28207 Points Posted on 17 January 2022

1. No useful life to be considered but these are considered in accounting policies of the govt.They form an integral part of audit report.
2. Yes scrap value has to be ascertained.
3. In software you have to create in master.

Mr. AB

Self-employed

90 Points Posted on 17 January 2022

Originally posted by : sabyasachi mukherjee
	1. No useful life to be considered but these are considered in accounting policies of the govt.They form an integral part of audit report.2. Yes scrap value has to be ascertained. 3. In software you have to create in master.