How much is depreciation on camera?

The Income Tax 1961 does not provide any rate of depreciation specifically for cameras. But we can consider camera within the block of ‘Computer including software’ for which the rate of depreciation is 40% at WDV method.

It is a general practice for non-corporates to charge depreciation at rates slightly lower than the rate provided by the Income Tax Act, 1961. But one cannot charge depreciation more than it.

In the case of corporate, the rates for charging depreciation are provided by the Companies Act 2013, which is

• 20.58% WDV and 7.31% SLM for cameras to be used for the production of cinematography and motion pictures.
• 25.89% WDV and 9.50% SLM for cameras which is part of electrical installations and equipment (CCTV cameras).

Let’s take an example:

Mr X is a jewellery shop owner and has installed CCTV cameras on 1^st April 2021, costing ₹ 40,000 at various points in his shop to ensure safety and security. Keeping in mind the Income-tax rates, his accountant decided to charge depreciation @ 30% p.a. on the CCTV cameras.

Following is the journal entry:

The balance sheet will look like this: