What method of depreciation calculation is used to calculate the tax liability according to Income Tax Act, 1961?

What method of depreciation calculation is used to calculate the tax liability according to Income Tax Act, 1961?


According to Income Tax Act, 1961 Written Down Method of depreciation is used to calculate the tax liability. In this method, depreciation is charged at predetermined rate, which is calculated on the balance of cost of asset less amount of depreciation previously charged. The rate at which the depreciation will be calculated is also specified in the Income Tax Act 1961.
How is depreciation calculated as per schedule XIV of Companies Act, 1956?
As per Schedule XIV of Companies Act, 1956 the company can calculate the depreciation…
How are the fixed assets categorized to calculate the depreciation as per schedule XIV of Companies Act, 1956?
To calculate depreciation as per Schedule XIV of Companies Act, 1956 the fixed assets are categorized as below:…
Compare: Depreciation as per Companies Act and Income Tax Act
Under the Companies Act: Depreciation is computed either using the straight line method or written down value method…
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