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Software intangible asset depreciation rate

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Kishore Nuthalapati

Accountant for multiple small entities

171 Points Posted on 21 August 2023

Hi Sir or Madam

Could someone please advise depreciation rate on Software- Intangible asset

Thanks in advance

Replies (3)

Quick Summary

This discussion explores the depreciation rate for software, classified as an intangible asset. The rate can differ based on accounting standards like IFRS and GAAP, as well as company-specific policies and the software's nature. For tax purposes under the Income Tax Act, computer software may be depreciated at a rate of 40%. It's crucial to consult a qualified accountant for the most accurate and current information.

sabyasachi mukherjee

Profession

28271 Points Posted on 22 August 2023

SPECIFY NATURE OF SOFTWARE.

Musrath Shaik

175 Points Posted on 22 August 2023

The depreciation of software, which is considered an intangible asset, can vary based on the accounting standards being followed, the company's policies, and the nature of the software. As of my last update in September 2021, I can provide you with a general understanding, but please note that the rates and guidelines may have changed since then. It's also important to consult with a qualified accountant or financial professional for the most accurate and up-to-date information.

Under International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), software is typically treated as an intangible asset.

For further more detailed information on this topic visit:Depreciation under the Income Tax Act

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