How to calculate the Depreciation on Assets

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/= 



Hope this helps 









    • Related Articles

    • Deprecation calculation as per companies act 2013 in Income Tax

      Deprecation 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 of an asset is the cost of an asset or other amount substituted for cost, ...

    • How to Calculate Tax on 'AGRICULTURAL INCOME'

      CALCULATING TAX ON AGRICULTURAL 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 changes as per the change in Income Tax ...

    • In Income Tax Auditor > When IFSC Code is not found

      IFSC Code not found  In the Income Tax Auditor software, you can search the IFSC code of most of the banks. If you are not able to search the IFSC code in the software, then follow the procedure given below for its solution. Step 1 First of all, you ...

    • How to update Income Tax Auditor Software manually

      Solution: In Case of Client is using Spectrum software and wants to update the Zen Income Tax Auditor only : To resolve the error please follow the steps provided below: 1. Go to Root location of the software - "C:\Program Files (x86)\K.D.K. ...

    • Income Tax calculation AY 2010-11 (FY 2009-10)

      Income Tax calculation  AY 2010-11 (FY 2009-10) 1.  In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person - Up to 1,60,000                 – Nil 1,60,000 to ...