First, we have to know what is the Depreciation Rate and What is the Air Conditioner Depreciation Rate?
Under the Income Tax Act, depreciation is allowed to be deducted for the reduction in the real value of tangible or intangible assets used by a taxpayer. The concept of depreciation is used for the purpose of writing down the cost of an asset over its useful life.
Depreciation is a mandatory deduction in an entity’s profit and loss statements and the Act allows a deduction in either the straight-line method or the written down value (WDV) method.
Depreciation calculations under the WDV method are widely used excluding generation or undertaking engaged in generation and distribution of electricity.
The Act also allows deductions for additional depreciation in the year of purchase under certain circumstances. To read about the additional depreciation go to the additional depreciation under the Income Tax Act.
In the case of a domestic company, which has exercised an option under the depreciation allowance under section 32 (1) (ii), the rate of taxing 30% to 25% under section 115BA of the Income Tax Act, 1961. With effect from April 1, 2016, the Act shall be limited to 40 percent in respect of any block having more than 40 percent of the property at the written down value of such block of property.
Air Conditioner Depreciation Rate: Click Here
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