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Answer Posted / hemanth.batchu
Most of the people think that if depreciation will increast
the profits and the reduce the taxes but strictly speaking
it wount, if we brought a asset worth of 100 crore this
year or next year we have to get the full amount before it
will die,Bcos to buy new one. so depreciation will help the
company acc to show when ever they want to show. the
relation ship is vise versa
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