Depreciation rate as per income tax act for ay 2022-23

Before knowing the Depreciation Rate as Per Companies Act for FY 2021-22, we must know the meaning of depreciation. In simple words, depreciation is a reduction in the value of assets over time, due in particulars to wear and tear. As per companies act 2013, “Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life, where the depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. Under Income Tax, Depreciation is provided on the basis of the percentage (%) of the written down value (WDV) of fixed assets. In the new companies act, depreciation is allowed on the basis of the useful life of assets and residual value. No depreciation rate is given in the schedule. In this article, we have compiled the useful life of various tangible assets as given in companies act 2013 and rate of depreciation applicable if assets are purchased on or after 01st April 2014 and residual value as 5%. Depreciation Rate as Per Companies Act for FY 2021-22 Schedule II of Companies Act 2013, is indicative in nature as it indicates instead of specifying the rates of depreciation for various assets and specifies that depreciation should be provided based on the useful life of assets. It al...

Gold & Silver Rates for the Income Tax purposes Introduction: Do you know that the sale of gold & silver is taxable as per the Income Tax Law in India? Capital Gain Tax provisions under the Income Tax Act, 1961 prescribe that any gain on the sale of gold, silver, or jewellery, etc. shall be liable for tax either as “Long Term Capital Gain” or “Short Term Capital Gain”. For being classified as “Long Term Capital Gain”, a minimum holding period of 3 years is mandatory. It means that if you hold gold/silver/jewellery for more than 3 years, any gain on the sale thereof shall be treated as “Long Term Capital Gain” and will be eligible for indexation benefits as per the Income Tax law. For calculation of long-term capital gains on gold/ silver, you need to know the “cost of acquisition” but in general, the Indians inherit gold & silver from their elders for which the exact cost is not known sometimes. Due to this, it becomes difficult to make a proper calculation of the capital gain amount. Further, sometimes the Assessing Officer disputes the fair value of gold declared by the assessee in his/her gold rates (24 carats 10 gms.)& Silver rates (9960 touch- per kg) as of 01-04-1981 and for every year 31 st March starting from the year 2009 to 2022. Date of Valuation Assessment Year Gold Rates (Standard 24 Carats)- per 10 Gms. Silver Rates (9960 touch)- per kg. 01-04-1981 1981-82 1670 2715 31-03-2009 2009-10 15,105 22,165 31-03-2010 2010-11 16,320 27,255 31-03-2011 2011-12 20,775 56...

ABCAUS Excel Depreciation Calculator FY 2022-23 under Companies Act 2013 as per Schedule-II Version 04.26 The maiden ABCAUS Excel Companies Act 2013 Depreciation Calculator was first launched in March, 2015. The ABCAUS Depreciation calculator for FY 2022-23 has also been formulated and styled the same way as its predecessor so that users find themselves familiar with it. This calculator is meant for companies following April to March Financial year. Also the calculator is meant only for tangible assets. Like, in last year useful life of the assets purchased during the FY 2022-23 is taken in integers only. Any error or suggestions may please be reported at [email protected] ABCAUS Excel Depreciation Calculator FY 2022-23 under Companies Act 2013 Saving the file to your local computer disk Please note that while downloading this utility save it as either Excel 97-2003 (xls) or Macro Enabled sheet in Excel 2007 or later versions (.xlsm) Only How to use this calculator? The calculator has been divided into five part as under: (a) Assets (b) Opening Details (c) Additions (d) Opening Deletions, and (e) Depreciation Chart In each part only “grey” fields are required to be filled. Assets Assets database should be created by providing names of the assets and by selecting the asset type as per schedule-II. Please note that no two names should be identical. If for example there are multiple computers, they should be written in different rows as computer1, computer2…and so on. Since, yo...

MAT stands for “Minimum Alternative Tax” that has been introduced to collect tax from the companies that have been enjoying tax benefits or tax exemptions in spite of having huge profits. These companies distribute considerable dividends to shareholders but take advantage of various provisions of income tax law such as exemptions; deductions etc. to avoid paying tax. Such companies are basically zero tax or minimum tax paying companies. Given an increase in the number of such low tax paying companies, MAT was introduced by the Finance Act, 1987 with effect from next financial year, i.e. 1988-89. Later on, it was withdrawn by the Finance Act, 1990 and then reintroduced by the Finance (No.2) Act, 1996, w.e.f, 1-4-1997. Government of India has always worked to ensure that no individual or company that earns a significant amount of profit gets to avoid the payable income tax. This led to the inception of Minimum Alternative Tax (MAT). The sole purpose of MAT is to facilitate taxation of the zero / low tax companies by making them pay a minimum amount of direct tax based on their book profits. Book Profit can be referred to as the total amount of profit or net profit in a profit & loss account for a particular year. It is calculated as per the guidelines of the Companies Act, 2013. There are various factors on which book profit depends generally known as adjustments. There are two types of adjustments: positive adjustments, and negative adjustments. • Positive Adjustments: Thes...

MAT stands for “Minimum Alternative Tax” that has been introduced to collect tax from the companies that have been enjoying tax benefits or tax exemptions in spite of having huge profits. These companies distribute considerable dividends to shareholders but take advantage of various provisions of income tax law such as exemptions; deductions etc. to avoid paying tax. Such companies are basically zero tax or minimum tax paying companies. Given an increase in the number of such low tax paying companies, MAT was introduced by the Finance Act, 1987 with effect from next financial year, i.e. 1988-89. Later on, it was withdrawn by the Finance Act, 1990 and then reintroduced by the Finance (No.2) Act, 1996, w.e.f, 1-4-1997. Government of India has always worked to ensure that no individual or company that earns a significant amount of profit gets to avoid the payable income tax. This led to the inception of Minimum Alternative Tax (MAT). The sole purpose of MAT is to facilitate taxation of the zero / low tax companies by making them pay a minimum amount of direct tax based on their book profits. Book Profit can be referred to as the total amount of profit or net profit in a profit & loss account for a particular year. It is calculated as per the guidelines of the Companies Act, 2013. There are various factors on which book profit depends generally known as adjustments. There are two types of adjustments: positive adjustments, and negative adjustments. • Positive Adjustments: Thes...

Before knowing the Depreciation Rate as Per Companies Act for FY 2021-22, we must know the meaning of depreciation. In simple words, depreciation is a reduction in the value of assets over time, due in particulars to wear and tear. As per companies act 2013, “Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life, where the depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. Under Income Tax, Depreciation is provided on the basis of the percentage (%) of the written down value (WDV) of fixed assets. In the new companies act, depreciation is allowed on the basis of the useful life of assets and residual value. No depreciation rate is given in the schedule. In this article, we have compiled the useful life of various tangible assets as given in companies act 2013 and rate of depreciation applicable if assets are purchased on or after 01st April 2014 and residual value as 5%. Depreciation Rate as Per Companies Act for FY 2021-22 Schedule II of Companies Act 2013, is indicative in nature as it indicates instead of specifying the rates of depreciation for various assets and specifies that depreciation should be provided based on the useful life of assets. It al...

Gold & Silver Rates for the Income Tax purposes Introduction: Do you know that the sale of gold & silver is taxable as per the Income Tax Law in India? Capital Gain Tax provisions under the Income Tax Act, 1961 prescribe that any gain on the sale of gold, silver, or jewellery, etc. shall be liable for tax either as “Long Term Capital Gain” or “Short Term Capital Gain”. For being classified as “Long Term Capital Gain”, a minimum holding period of 3 years is mandatory. It means that if you hold gold/silver/jewellery for more than 3 years, any gain on the sale thereof shall be treated as “Long Term Capital Gain” and will be eligible for indexation benefits as per the Income Tax law. For calculation of long-term capital gains on gold/ silver, you need to know the “cost of acquisition” but in general, the Indians inherit gold & silver from their elders for which the exact cost is not known sometimes. Due to this, it becomes difficult to make a proper calculation of the capital gain amount. Further, sometimes the Assessing Officer disputes the fair value of gold declared by the assessee in his/her gold rates (24 carats 10 gms.)& Silver rates (9960 touch- per kg) as of 01-04-1981 and for every year 31 st March starting from the year 2009 to 2022. Date of Valuation Assessment Year Gold Rates (Standard 24 Carats)- per 10 Gms. Silver Rates (9960 touch)- per kg. 01-04-1981 1981-82 1670 2715 31-03-2009 2009-10 15,105 22,165 31-03-2010 2010-11 16,320 27,255 31-03-2011 2011-12 20,775 56...

ABCAUS Excel Depreciation Calculator FY 2022-23 under Companies Act 2013 as per Schedule-II Version 04.26 The maiden ABCAUS Excel Companies Act 2013 Depreciation Calculator was first launched in March, 2015. The ABCAUS Depreciation calculator for FY 2022-23 has also been formulated and styled the same way as its predecessor so that users find themselves familiar with it. This calculator is meant for companies following April to March Financial year. Also the calculator is meant only for tangible assets. Like, in last year useful life of the assets purchased during the FY 2022-23 is taken in integers only. Any error or suggestions may please be reported at [email protected] ABCAUS Excel Depreciation Calculator FY 2022-23 under Companies Act 2013 Saving the file to your local computer disk Please note that while downloading this utility save it as either Excel 97-2003 (xls) or Macro Enabled sheet in Excel 2007 or later versions (.xlsm) Only How to use this calculator? The calculator has been divided into five part as under: (a) Assets (b) Opening Details (c) Additions (d) Opening Deletions, and (e) Depreciation Chart In each part only “grey” fields are required to be filled. Assets Assets database should be created by providing names of the assets and by selecting the asset type as per schedule-II. Please note that no two names should be identical. If for example there are multiple computers, they should be written in different rows as computer1, computer2…and so on. Since, yo...