Books depreciation rate as per companies act

Is it necessary to charge depreciation as per companies act in books. We have also compiled changes to schedule ii useful lives to compute depreciation read with section 123 of companies act,20 made vide notification no. Depreciation rate chart under companies act, 20 as per schedule ii applicable from 01. Depreciation chart as per companies act20 simple tax.

Depreciation rates as per income tax act, 1961 block of assets the expressions assets and blocks of assets w. Depreciation as per new companies act is allowed on the basis of useful life of assets and residual value. Also know depreciation as per companies act 20 for fy 201819. Depreciation allowance as percentage of written down value. Accordingly rates are calculated in the following depreciation rate chart companies act 20. In companies act useful life is defined rates are calculated assuming scrap value of 5%. Therefore, there is difference between income as per books and taxable income as per it act. What is the rate of depreciation on projectors as per. Rates has been changed for financial year 201718 and onwards. Hence the depreciable value of the asset will be rs. Depreciation as per companies act and income tax act under the companies act. Download also the depreciation rate as per companies act 20 in pdf.

Depreciation rate chart as per companies act 20 with related law. Checkout the rate table of depreciation rates for financial year 201819 as per indian income tax act. If the books of account uses depreciation as per companies act. Depreciation chart as per companies act basics depreciation chart. Depreciation rate chart as per companies act 20 with. The rates are calculated by taking original cost of the assets rs. Ca sandeep kanoi in this article we have compiled depreciation rates under companies act 20 under written down value wdv method. As soon as a person purchases a phone and uses it for the period of. Rates of depreciation as per companies act 20 taxguru. Residential buildings except hotels and boarding houses. Depreciation rates and provisions as per companies act 20. Depreciation rate chart under companies act, 20 for as per schedule ii applicable from 01.

The depreciation rate on mobile phones as per companies act is explained very simply. Depreciation as per companies act and income tax act. In this article we have compiled depreciation rates under companies act 20 under written down value wdv method and as per straight lime method slm. Also read depreciation rates as per companies act,1956. Scehdule ii 1 of the companies act, 20 prescribes the depreciation rules, rates and useful life of the assets. For the purpose of this schedule, the term depreciation includes amortisation. Depreciation is computed either using the straight line method or written down value method.

In straight line method the amount of depreciation is uniform for all the years where in written down method the amount of depreciation is highest in the first year. Just wanted to make a point, the aforementioned rates of 100% and 60% are fo assessees carrying on profession, but if assessees carrying on business in running lending libraries, then depreciation allowed is 100% and for assessees carrying on other business the rate would be 15% as per the income tax act 1961. Is it necessary to charge depreciation as per companies. Depreciation as per companies act 20 for financial year 201415 and thereafter. Purely temporary erections such as wooden structures. He is the author of 2 books and has vast experience of representing cases. Depreciation rates as per the companies income tax act for. Rate of depreciation as per companies act is given under schedule xiv and the. It says the depreciation shall be charged on the cost of the asset, less its residual value, spread over the number of useful life. Whereas depreciation rate given in it act are used for preparing financial statements which are filed with income tax authorities for calculating income tax. About the book the companies act, 20 has introduced one of the most important provisions for companies as well as auditors in the form a new method of calculating depreciation as per schedule ii. Depreciation rates and provisions as per companies act.