Depreciation Rates Comparison

Last updated at Dec. 13, 2024 by

 

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% 40%
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

 

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.