Various types of calculating tax depreciation explained

Whenever there is talk about tax depreciation, you find reference to two common methods of calculating the depreciation. One is the prime cost method. You can also call it the straight line method of depreciation. The other one is the diminishing value method. Both these methods are equally important and effective. Naturally, they have their differences in the methods of calculation though the ultimate results they achieve are the same.

Let us see the working of the two methods of calculating depreciation and understand the modalities well. In fact it is a