Bhoothalingam Committee on Depreciation-An Evaluation of Its Recommendations

Bhoothalingam Committee on Depreciation An Evaluation of Its Recommendations N J Jhaveri Business entities are permitted to reduce their gross profits by depreciation allowances which are granted on certain specified assets. The objective is to provide for replacement of a capital asset. Depreciation is computed by applying prescribed rates to the written-down value of an asset. The law also allows accelerated depreciation in the form of an additional "extra-shift" allowance.