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Depreciation Rates under Income Tax [ As amended by ...

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Tax India. Rates of depreciation (for income-tax) Block of assets [see para 48. 3] Depreciation allowance as percentage of written down value AYs 04 to 06 1 PART A TANGIBLE ASSETS 2

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Rates of Depreciation as Per Income Tax Act,1961

In case of a domestic company, which has exercised an option under Section 115BA of the Income-tax Act, 1961 of rate of taxation from 30% to 25% , the depreciation allowance under Section 32(1)(ii) of the Act in respect of any block of assets entitled to more than 40 per cent shall be restricted to 40 per cent on the written down value of such ...

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Basically the main difference in the calculation of depreciation under Income Tax Act and The Companies Act is that of the methods to be adopted for the purpose of computation. Under Income Tax Act 1961, depreciation on assets is governed by section 32.

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