Are the rates specified in the income tax act are maximum rates or it can be charged depericiation in income tax at the rate lower than as specified in income tax?
it is nowhere mentioned that the rates of depreciation are maximum rates then how could we assume so. also if it is allowed to charge Dep at lower rates people will start abusing it by claiming lower dep in years of losses.
After many Tax plannings by Ambani Sir, govt understood the importance of depreciation. One need to charge depreciation mandatorily at the rate specified in act. Sir Dhiru Bhai Ambani have done many tax plannings on depreciation and that's why, it's mandatory to charge depreciation. you escape from it and not even charge at lower rate. In case of lower profit MAT will apply. Depreciation will carried forward for infinite period bin case of loss. In case of higher profit also you need to charge depreciation at same rates.
dep rates are fixed and it is compulsory it is mention in a circular issues by CBDT that if any assessee does not claim dep then A.O shall at the time of assessment charge the dep
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