Answer Posted / navjot dhillon
we can consider depreciation as a source of fund.because it
is only a book entry.it is a non-cash item.total income is
calculated after making deduction of the amount of
depreciation from gross total income. tax is never imposed
on gross total income. The amount of tax is calculated on
total income of the business.when the depreciation is
deducted from gross total income,it reduce the total income
of the business,so it is cleared that the lower slab rate
of tax is imposed.So depreciation is a sourse of fund
because it save the amount of tax.
Is This Answer Correct ? | 5 Yes | 2 No |
Post New Answer View All Answers
Expand-------NAST
When is proposed divided a current Liability and when is it non-current liability? Why is it in the list of Current Capital Accounts?
Which Exchange determine Foreign ?
if a person join company on 01-04-04. after 5 year he is resigned on 31-03-09 and date of leaving is 14-04-09. Is he is on under gratuity payable or not? he is completed 5 years on 31-03-09. what is basis on calcultion on final settlement is date of resignation or date of leaving whcih is on 14-04-09.
What do you know about hyd? Tell something about hyd?
Can I check my Vantage credit score range online?
If we spend a sum of Rs.10 Lacs towards Processing and Upfront fee for obtaining working capital term loan. can we treat this amount as a deferred revenue expenditure or not
Can someone tell me about SAP FI/CO test questions?WHat are the main things we must know?
Define Bill of Exchange
what is ment by master in tally?
For what purpose ERS is used for?
HOW CALCULATE ADVANCE TAX ? PLEASE EXPLAIN IT ?IN CASE OF FIRM, IF WE PAID FIRST INSTALMENT OF ADVANCE TAX.
Short Answer on __________Trade
What is the important of cash in a business unit
Ram retired from partnership. The partners with mutual consent agreed to put the capital balance as on the date of retirement as loan to the firm @ 18% pa. The credit balance to his capital account was Rs 325000/- Pass necessary entry