Accelerated depreciation, Income Tax

[seetha lakshmi]

How to compute? Is this allowable under the Income Tax Act, 1961

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[DEV KUMAR KOTHARI]

This is with reference to Issue ID 2046 and 2048. The concept of accelerated depreciation has really been lost significance after the rates of depreciation were reduced in IT Rules from time to time for various assets. In fact the higher rates were also rate of normal depreciation, allowable in normal course. Only because higher rates were prescribed, they were called accelerated deprecation initially. Depreciation is to be claimed as per rates prescribed in IT Rules on WDV basis as you are doing now. In case of computers higher rate of 60% is allowable.