Setup Depreciation Categories

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Accounting of Depreciation in India currently is done differently for Company Law and Income Tax.
 
Hence the suggestion would be as follows
Group the Assets as follows (AS05)
Company Law
CL/BUI Company Law Building
CL/EQP Company Law Equipment and so on
 
Income Tax
IT/PLM Income Tax Plant and Machinery
IT/PLM/P Income Tax Plant and Machinery Pollution Equipment
IT/EQP Income Tax equipment
 
Incidentally the asset accounts in the GL can also be linked up to the appropriate group. This is used when you report on the depreciation which has to be posted to the GL, the report would provide you the details sorted by account code.
 
To enable GL reconciliation ensure that the GL accounts for assets, depreciation, repair cost breakup are suitably identified using the facility (AS02)
 
The Reporting Group (with respect to Schedule 6 Balance Sheet) for purposes of printing the Fixed Assets schedule is also linked up to the asset group.
Create the Depreciation Categories as follows (AS04)

Category	Description
IT/PLM/01	Income Tax Plant and Machinery Depreciation
	Where the depreciation basis is W (Written Down Value) and rate is 25% and cut-off month is September
IT/PLM/P	Income Tax Plant and Machinery pollution equipment
	Where the depreciation basis is W (Written Down Value) and rate is 100% and cut-off month as September

 
 
Notice that we can now LINK Asset Group and Depreciation category (AS07)
 
This information is used when we define an asset and group it, (AS21/AS22) the rest of the information (viz. Depreciation basis and percentage) are automatically populated