Depreciation on Mobile Phone (FY 2016-17, AY 2017-18)

While filing income tax return for businesses, one can deduct the deprication from the income and hence reduce the effective income tax. Typically depreciation is taken on items like two wheelers, car, truck, computer. mobile etc.

This article covers the depreciation rules applicable for mobile phones for FY 2016-17 or AY 2017-18

Depreciation on Mobile Phone (FY 2016-17, AY 2017-18)

IT Act

From the point of depreciation on Mobile phones in income tax return of FY 2016-17, AY 2017-18, mobile phones are considered under the category of plant and machinery. This comes under 15% category.

• Depreciation on Mobile Phones - 15%

Companies Act

• Using Written down value - 13.91 %
• Using Straight line method - 4.75 %