Determination of depreciation under section 205(2)(b) of he Companies Act, 1956, consequent upon changes in the Income-tax rates introduced by Finance Act, 1983

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..... r No.001 Dated 10/1/1985 To All the Chambers of Commerce. Dear Sirs, Subject : Determination of depreciation under section 205(2)(b) of he Companies Act, 1956, consequent upon changes in the Income-tax rates introduced by Finance Act, 1983. I am directed to say that during the year 1983, the rates of depreciation under the Income-tax Act have been changed on some of the assets. As .....

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..... method under clause (b) of sub-section (2) of section 205 has to be recalculated on the basis of the revised rates under the Income-tax Act. The companies which adopt the straight line method of depreciation should provide for the depreciation in their annual accounts of the following basis: (a) No. of years for which asset has already been depreciated, before the change in depreciation rate - .....

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