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related to depreciation

12 March 2018

Can a company claim depreciation under income tax and do not claim the depreciation under companies act??? What are the consequences??

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2 Replies

CA Harshali Salvi (Practicing Chartered Accountant) (1105 Points)
Replied 13 March 2018

companies have to prepare accounts and get it audited as per companies law . But while filing return of income depreciation as per income tax act is allowed. so have to calculate depreciation for both acts. this difference of deptn on income might increase your tax liability in earlier and and reduce in later years or vise a versa.

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om sai srikar (Intern) (47 Points)
Replied 13 March 2018

Dear shubham,

Charging depreciation as per companies act is mandatory because if depreciation is not charged True and Fair view of Financial Statements is affected.