Call for same rate of depreciation in I-T, Companies Act

The Comptroller and Auditor General has recommended harmonisation of depreciation rates under the Income Tax Act and Companies Act, after taking into consideration systemic and compliance issues. In its report on Allowance of Depreciation and Amortisation tabled in the Lok Sabha on Friday, CAG has recommended pro-rata allowance of depreciation depending upon the use of assets during the relevant previous year and settle the inconsistencies in allowance of depreciation on assets owned by charitable and religious trusts.