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Income tax depreciation in india

Former Member
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Dear All,

How do we adress the income tax depreciation in India.

As we know the depreciation treatment for Income tax depreciation is a block concept...how do we adress that...

Could any one explain elaborately if possible...short and precise inputs are also most welcome...

Please help to resolve the issue

Sapfrido

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
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cleared

saikrishna_vallurupalli
Active Contributor
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Existing group asset concept for income tax depreciation functionality was withdrawn with Note 738919.

Following limitations/restrictions are there in the existing process.

Limitations of Group Assets

Locking

Cap on the volume of transactions u2013 99,999

Limitations of Report J1IQ

Opening Balance Calculation

Depreciation Calculation for Assets acquired and Put to use for less than 180 days

Depreciation Calculation for different fiscal year variants

Assets Acquired and Sold in the same year

Asset Block Retirement by Scrapping

Asset put to use date capture

Report Formatting Issues

The solution for IT Depreciation Calculation is being revamped and the new solution shall be available in EhP5.

If you have further query about new solution better to contact SAP by raising the OSS message by using component -XX-CSC-IN-FI

Former Member
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Dear All,

This means i have to create a asset class only for group assets- income tax purpose....

If that is the case what would be my "companies act depreciation area" for this asset class be...should i supress

this depreciation area for Group asset class...

Thanks and regards

Sapfan

Former Member
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Dear,

This will be your block assets for income tax, and you will define a depreciation for this class too, in every main asset you assign this group asset in the depreciation area. This group will collect all the assets acquired values and calculate the depreciation.

Call this depreciation area as Income tax etc.

Note: Create asset groups for all your asset classes.

Former Member
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Dear,

As you said income tax depreciation will be on block assets, follow as..

First, define IT depreciation then asset class (like block)

then assign group assets for depreciation area IT in OAYM.

specify asset class (block) as group assets in OAAX.