Practical Income Tax
Corporate Income Tax

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.