Asset register
Every asset listed with purchase date, cost, supplier, location, tag and useful life.
All accounting & bookkeeping services
Accounting & Bookkeeping
Fixed Asset Register
FinAura builds and maintains your fixed asset register: every asset with its date, cost, location and useful life. We compute depreciation as per the Companies Act for your books and as per income-tax rules for your return, reconcile the two, and keep the register ready for your auditor and for physical verification.
- Reviewed by Chartered Accountants
- Zoho Books and Tally Prime
- Bangalore and across India
What is covered
What the Register Covers
Every asset recorded once, depreciated twice: for the books and for tax.
Companies Act depreciation
Depreciation over useful lives under Schedule II, on the method your policy sets.
Income-tax depreciation
Depreciation on blocks of assets at the prescribed rates, for the tax return.
Book-tax reconciliation
The difference between the two worked out, feeding the deferred tax calculation.
Additions and disposals
Purchases, sales, transfers and write-offs recorded as they happen, with gains or losses worked out.
Physical verification support
Tagged lists for counting, and the register reconciled with what was found.
How the month runs
How We Build and Keep the Register
Four steps from scattered invoices to a register your auditor can rely on.
Step 1
Gather
- Purchase records collected
- Existing schedules reviewed
- Locations listed
Step 2
Build the register
- Each asset recorded
- Useful lives set
- Tags assigned
Step 3
Compute
- Book depreciation
- Tax depreciation
- Difference reconciled
Step 4
Maintain
- Additions and disposals
- Monthly or quarterly entries
- Year-end schedule
Your part
What We Need From You
- 01Purchase invoices for assets, or last year's schedule
- 02Sales or scrapping of assets during the year
- 03Where assets are kept
- 04Your depreciation policy, if one exists
Our part
What You Get
- A complete fixed asset register
- Depreciation for the books and for tax
- A reconciliation of the two, ready for deferred tax
- Asset schedules for the financial statements
- Lists ready for physical verification
A common question
Why are book depreciation and tax depreciation different?
Company law depreciates each asset over its useful life, using the lives in Schedule II unless you have a technical reason to differ. Income-tax law depreciates groups of similar assets, called blocks, at prescribed rates.
So the two figures almost never match. The difference is not an error; it is a timing difference, and it is what the deferred tax calculation is built on. A good register keeps both, side by side.
See financial statementsDeferred taxBuilt on the difference
Two depreciationsCompanies Act and income tax
Asset registerEvery asset, date, cost and life
Who it is for
Who Needs a Proper Asset Register
Companies
Registers and depreciation that meet company law and stand up to audit.
Manufacturers
Plant and machinery across locations, tracked properly.
IT-heavy businesses
Laptops and equipment that move between people and offices.
Businesses before audit
A register built from scratch before the auditor asks.
The rules, in plain English
What the Law Says
Companies Act, 2013
Schedule II
Depreciation is charged over each asset's useful life. Schedule II gives indicative useful lives; a company may use different lives with a technical justification, disclosed in its financial statements.
Official source: mca.gov.inAccounting Standards
AS 10 / Ind AS 16
Property, plant and equipment is recorded at cost, depreciated over its useful life, and reviewed for changes in useful life and residual value.
Official source: icai.orgIncome-tax law
Depreciation on blocks
For tax, assets are grouped into blocks and depreciated at prescribed rates, which is why tax depreciation usually differs from book depreciation.
Official source: incometax.gov.inAccounting Standards
AS 22 / Ind AS 12
The difference between book and tax depreciation is a timing difference, and is accounted for through deferred tax.
Official source: icai.orgThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Fixed Asset Questions, Answered
What is a fixed asset register?
A record of every long-term asset a business owns, with its purchase date, cost, location, useful life and depreciation. Companies need one to support the asset figures in their financial statements.
How is depreciation calculated under the Companies Act?
Over the useful life of each asset, using the lives in Schedule II unless there is a justified reason to use a different life, on the straight-line or written-down-value method your accounting policy sets.
How is depreciation different under income tax?
Income-tax law depreciates blocks of similar assets at prescribed rates. The result is usually different from book depreciation, and the difference feeds deferred tax.
Can you build a register if we have never had one?
Yes. We start from purchase invoices and past schedules, and where records are thin, we use physical verification to fill the gaps.
Can the register be kept in Tally Prime or Zoho Books?
Yes. Zoho Books has a fixed asset module, and Tally Prime can track assets with the right ledger structure; we also keep a working schedule for both depreciation methods.
Often Taken Together
All 10 Accounting & Bookkeeping services01Accounting & BookkeepingFinancial StatementsMonthly, quarterly and annual profit and loss, balance sheet and cash-flow statements, prepared in the Schedule III format where it applies.02Accounting & BookkeepingInventory AccountingStock movements, valuation and cost of goods sold recorded so margins are real and stock on the books matches stock on the floor.03Accounting & BookkeepingEnd-to-End AccountingYour full finance back office: bookkeeping, reconciliations, vendor and customer ledgers, monthly close and reports, so you don't need an in-house accounts team.04Accounting & BookkeepingBookkeepingDaily or weekly recording of sales, purchases, expenses and bank entries, with every entry coded to the right ledger and GST head.05Systems & ControlsInternal Audit & ControlsInternal audit, controls design and testing, SOP and process implementation.06Tax & ComplianceTaxationGST, income tax, TDS, tax planning and notice replies, from reconciled data.