How to calculate depreciation as per Income Tax act for India Business in SAP Public cloud.

[Yogita_Kadam]

Hello Team,

We are facing issue while calculating depreciation as per Income tax Act for India Business.

Which depreciation key should be there for the asset master to compute depreciation as per Income Tax Act in the SAP public cloud as by default it is as per Useful Life of Fixed Assets.

[jhonndee · Accepted solution]

In SAP Public Cloud, to calculate depreciation as per the Income Tax Act of India, you need to use the declining balance method (WDV method) instead of the default useful life approach. Ensure that the correct depreciation key (such as LINR or declining balance keys specific to India) is assigned to the asset master. You can also configure a custom depreciation key in Manage Your Solution > Configure Your Solution to align with tax depreciation rates. If needed, check SAP Notes or consult SAP support for the latest depreciation key recommendations for India.