Computation of Depreciation for Companies for 2017-18

    Posted By : Devashish / Published on : 06-Sep-2017 04:48 AM / View : 308 / Comment : 2
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    What is the Difference between Depreciation Computed under Schedule II of Companies Act 2013 and Income Tax Act 1961; and what are things need to remember during computing Depreciation of Companies for the purpose of both Acts???
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    • Different rates of depreciation have been prescribed under the provisions of section 32 of IT Act, 1961 and said Schedule of the Companies Act, 2013. You are required to refer the said provisions and raise specific query,if any.

      09-09-2017 / 01:50:33 PM
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    • Hello,

      Income Tax Act follows Blockwise Depreciation method while Companies Act follows Asset wise method of Depreciation. 

       

      In Income Tax , WDV method to be follow. Only some of the industries are required to follow SLM. In Companies Act you are required to follow WDV or SLM which is applicable.

       

      Rates are different in both the acts. In Income Tax they follow full and half rate depreciation. While in Companies Act, they follow Useful life concept.

      Thanks

      12-09-2017 / 01:36:00 PM
      Reply



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