How to calculate the Depreciation on Assets
Addition Deprecation calculation
Additional Deprecation is depend on Purchases assets during 180 days or more Purchase Less than 180 days in a year,
If asset is put to use for less than 180 days then amount equal to 50% of the amount calculated using normal depreciating rates is allowed as depreciation.
Asset put to use on or before 5th oct of the year then 100% depreciation is allowed, otherwise 50%.
let's understand this with following example in software.
Click "F4" for addition entry
Here - Block of asset on Buildings rate 10 %
Opening wdv - 100000
deprecation - 10000
in addition "180 days or more"
Asset put to use on or before 5th oct is 100000 (deprecation 10 % = 10000 )
in addition "less then 180 days"
Asset put to use on or after 5th oct is 100000 (deprecation 5 % = 5000 )
Here to total deprecation is 25000/=
Related Articles
Income Tax || Depreciation calculation as per Companies Act 2013
Depreciation Calculation as per companies act 2013: Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount is the cost of the asset or another amount substituted for the cost, less ...
eXBace || Process of feeding Tangible Assets and Intangible Assets.
Assets encompass everything owned by a company. Tangible assets, which are physical, comprise cash, inventory, vehicles, equipment, buildings, and investments. In contrast, intangible assets, existing without physical form, include items such as ...
Income Tax Auditor manual updation
If the client is using Spectrum software but wishes to update only the Income Tax Auditor, then: To resolve the error, please follow the steps provided below: Step 1: Navigate to the root location of the software, which can be either "C:\Program ...
ZenIT || How to Calculate Tax on Agriculture Income
Calculating Tax on Agriculture Income Take the sum of the agricultural income and non-agricultural income. The Tax (A) should be computed on this amount. Example: The base tax slab varies according to changes in the Income Tax guidelines. Add the ...
CMA/FM Tools || How to Feed Depreciation Chart
How to Feed Depreciation Chart In Cma: What is Depreciation: The concept of depreciation serves to gradually allocate the cost of an asset over its useful life. It's a necessary deduction in the profit and loss statements of entities employing ...