Interested to Buy Any Domain ? << Click Here >> for more details...
Can any body tell me what is the difference between Company
act & income tax act depreciation chart, if any one have any
chart or clarification about it, please mail me at
vaish_shiwani87@rediffmail.com
- 5 Answers
- 23865 Views
- I also Faced
- E-Mail Answers
Answer Posted / ekansh garg
There are 2 types of depreciation charts:
Income tax act depreciation chart is given in Sec. 32 of
Income Tax act 1961, and is required for the computation
of 'income from business and profession' as per income tax
act.
Whereas companies act, 1956 Schedule XIII gives the
depreciation rates as per companies act. This chart is
applicable only to companies.
Both the charts are required to calculate depreciation on
fixed assets in case of companies. However, in case of
other assessees like individual,HUF and Firms only income
tax chart is required.
While computing total income of a company for the purpose
of payment of tax:
Profit/loss as per Profit and Loss account (prepared
according to Companies act) is taken and depreciation as
per companies act is added back to it. Then depreciation as
per Income tax act is reduced from the above amount. The
amount so arrived is the amount on which tax will be paid
subject to any other adjustments.
Also, deffered tax as per AS 22 is calculated on the
difference of Carrying amounts of Fixed Assets as per
companies act and income tax act, and the same is adjusted
in the balance sheet and profit and loss account of the
company.
| Is This Answer Correct ? | 52 Yes | 7 No |
Post New Answer View All Answers
who is the auditor and his deautis
What is pr ? why it is prepared and what is its purpose ? who is responsible for preparing it ? And on any fault in it who is liable ? And what will happen if fault comes ?And What are major reasons of fault ?
What is an internal audit and what is the role of internal audit?
What are the objectives of internal audit?
Explain about cross functional audits?
Define decommission liability?
What is CARO 2003? What do you mean by management audit?
hi friend i have selected in ssc cgle as accountant in audit department. can anyone tell about the work of accountant in audit department?
Whats are the importance of evaluating an internal audit department?
Why do you want to work in audit?
What are documents need to vouch while doing sales vauching?
What to do after the audit?
Explain the difference between internal audit and statutory audit?
Do you know the different types of audits?
central excise all question
