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Chartered Accountants
ABCAUS Excel Auto Multi Depreciation Calculator - Companies Act 1956 and Income Tax Rules
Depreciation calculations for companies is always a tedious process. While depreciation for annual accounts is provided as per depreciation rates prescribed in Schedule XIV of the Companies Act, 1956, depreciation for income tax purpose is allowed as per Rule 5 of Income Tax Rules, 1962.
It is well known that not only the depreciation rates prescribed for various assets under both the statutes are different but also the methodology for calculation is also different under both the statutes.
Under the Companies Act, 1956 depreciation is calculated on pro rata basis either on written down value (w.d.v.) or straight line method (s.l.m.) and the rates vary depending on single shift, double shift or triple shift.
However, under Income Tax Rules, 1962, depreciation is calculated on written down value. Also as per section 32 of the Income Tax Act, 1961 if any asset is acquired during the previous year concerned and is put to use for a period of less than 180 days , the amount of depreciation is restricted to fifty percent (50%) .
This necessitates that the depreciation be computed separately for both the statutes.
This is an auto multi Depreciation Calculator which seeks to address the need for one depreciation calculator for both the statutes . It is a multi calculator which automatically calculates the depreciation as required under the Companies Act, 1956 and also under Income Tax Rules, 1962.
The users are required to only input the following data:
1. Opening - of Gross Block, Accumulated depreciation, WDV separately for both Statute
2. Additions made during the year
3. Deletions made during the year
And the depreciation schedules as per Schedule VI of the Companies Act, 1956 and as per Income Tax Rules, 1962 automatically get prepared.
ABCAUS Excel Multi Depreciation Calculator is simple and easy to use. It takes into account only WDV method (s.l.m. excluded). Macros must be enabled to use it.
ABCAUS Excel Auto Multi Depreciation Calculator Download
For excel Depreciation Calculator Cos Act 2013 Click Here >>
