1. What is Furniture Depreciation Rate?

The Companies Act 2013 specifies fixed depreciation rates for different asset classes. For furniture, the prescribed depreciation rate is 18.12% per annum using the written down value method.

2. How Does the Calculator Work?

The calculator uses the fixed depreciation rate:

Where:

• Asset Cost — Original cost of the furniture
• 0.1812 — Fixed depreciation rate (18.12%)

Explanation: The Companies Act 2013 prescribes this fixed rate for furniture depreciation calculation under the written down value method.

3. Importance of Depreciation Calculation

Details: Accurate depreciation calculation is crucial for proper financial reporting, tax compliance, and maintaining accurate book value of assets as required by the Companies Act 2013.

4. Using the Calculator

Tips: Enter the original cost of the furniture in Indian Rupees. The calculator will compute the annual depreciation amount at the prescribed rate of 18.12%.

5. Frequently Asked Questions (FAQ)

Q1: Is this rate applicable for all types of furniture?
A: Yes, the 18.12% rate applies to all furniture assets as per the Companies Act 2013 schedule.

Q2: Can this rate be changed?
A: No, this is a prescribed rate under the Companies Act 2013 and must be used for statutory compliance.

Q3: How is this different from income tax depreciation?
A: Income Tax Act may have different rates. This calculator follows Companies Act 2013 rates for accounting purposes.

Q4: What method of depreciation is used?
A: The written down value (WDV) method is used as prescribed by the Companies Act 2013.

Q5: Are there any exceptions to this rate?
A: The rate is generally fixed, but companies should consult with qualified accountants for specific scenarios or changes in legislation.