Dep Method COMPANIES ACT INCOME TAX ACT
Name Of Assets Usefull Life SLM WDV WDV
Machine 15 years 6.33% 18.10% 15%
Building 60 years 1.58% 4.87% 10%
Factory Building 30 years 3.17% 9.50% 10%
Furniture 10 years 9.50% 25.89% 10%
Motor Vehicles 8 years 11.88% 31.23% 15%
Computer 3 years 31.67% 63.16% 60%
Electrical Fittings 10 years 9.51% 25.89% 10%

 

Note:-

In Companies Act,

  • there is concept of useful life
  • It is assumed that there will be 5% Scrap Value at the end of useful life
  • Depreciation Rates have been calculated accordingly

 

In Income Tax Act

Depreciation Rates are directly given which have to be compulsorily followed

 

  1. Accounts and Finance
  2. Step 4 Balance Sheet Finalization Procedure

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .