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What Is Depreciation
While computing profits and gains from business or profession, a taxpayer can claim depreciation on all those assets which he has acquired and used for the purpose of his business or profession. Different depreciation rates are prescribed for different nature of assets. This write up lists down all such depreciation rates.
Calculation of Depreciation
Depreciation is Calculated as per the provisions of income tax act for income tax return and companies are calculated as per companies act. So Depreciation is calculated by two method one is as per companies act or one is as per income tax act. Today we provide depreciation chart as per income tax act for easily calculate depreciation.
Depreciation Rate Chart As Per Income Tax
As per Income Tax Act 1962 Depreciation calculation is mandatory. So All firms who furnish return to income tax return calculate depreciation as per income tax act Depreciation rates as per I.T Act for most commonly used assets
6. Depreciation Rates as per the Income Tax Act
Part A Tangible Assets: Class Part B Intangible Assets: Patents, know-how, trademarks,franchises,copyrights, licenses or any other commercial or business right of similar nature – 25% is the Depreciation Rate.
Felt filter system Electrostatic precipitation systems Scrubber Counter current / packed bed / venture / cyclonic scrubbers Dust collector systems Evacuation system and ash handling system
Aerated detritus chambers (including air compressor) Mechanical screen systems Mechanically skimmed grease and oil removal systems Flash mixing equipment and chemical feed systems Mechanical reactors and mechanical flocculators Mechanically aerated activated sludge / diffused air systems Biofilters Aerated lagoon systems Air floatation systems Methane recovery anaerobic digester systems Steam/air stripping systems Marine outfall systems Urea Hydrolysis systems Activated carbon column Bio Disc or rotating biological contractor Marine outfall systems Ion exchange resin column Centrifuge for dewatering sludge
D.C Defibrillators for pacemakers and internal use Colour Doppler Haemodialysis Cobalt therapy unit Vascular Angiography System including Digital subtraction Angiography Heart lung machine Spect Gamma Camera Magnetic Resonance Imaging System Ventilator used with anaesthesia apparatus Ventilator except those used with anaesthesia Surgical laser Gamma knife Fibreoptic endoscopes including audit resectoscope/paediatric resectoscope, arthoscope, peritoneoscopes, fibreoptic flexible nasal pharyngo, microaryngoscope, video laryngo, fiberoptic flexible laryngo bronchoscope. Bronchoscope, video oescophago gastroscope, video oescopghago bronchoscope, fibreoptic flexible oesophago gastroscope
7. Example for Depreciation calculation
In 2017-18 Company purchased the following assets – Depreciation will be computed as follows: Download Depreciation Rates as per Income Tax Act Purchases (>or = 180 days) Purchase (<180 days) 500000 40000 20000 300000 Sold during the year 0 0 0
