Companies Act and Income Tax Act compare Depreciation
As per Companies Act and Income Tax Act compare Depreciation?
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Under the Companies Act : Depreciation is evaluated either using the written down value method or straight line method. In straight line method the rate of depreciation is consistent for all the years where in written down method the amount of depreciation is highest in the initial year and slowly diminishes in the following years. Under Income Tax Act : Depreciation is evaluated using written down value method. As well it is charged on the block of assets and not on particular assets. The block of assets signifies a group of assets for that the same rate of depreciation is appropriate.
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