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 ...
    • 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 ...
    • 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 ...
    • 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 ...