Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of the time or obsolescence through technology and market changes, Depreciation includes amortization of assets whose useful life is predetermined.
Calculation of Depreciation.
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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.
Provisions of Depreciation As per Companies Act:
As per Companies Act 2013 Depreciation calculation is not mandatory But every company is calculated depreciation. So All firms who furnish return of companies (ROC Return) is calculate depreciation as per companies act