Posted By : Kamal
/ Published on :
10-Jul-2021 04:55 PM / View :
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Is it possible to change the accounting policy of the Company and take the higher rate of depreciation between the Income Tax Act and Schedule II of Companies Act 2013 ?
The rate of depreciation shall be determined on the basis of the useful life of an asset in Companies Act.
A suitable justification would be provided while doing the amendment in accounting policy.
The reason for doing so is to set aside the obvious deferred tax asset/liability which is a future thing and make the financials look more actual than before.
Opinions are invited in this regard please.
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