Depreciation - Section 32

Depreciation on block of assets: allowed on written down value with prescribed rates, timing rules and special provisos.

Depreciation is allowable on tangible and intangible assets used for business or profession, computed on the written down value of the block of assets at prescribed rates and allowed only when assets are actually put to use. Special provisos restrict first year allowance when assets are used for less than the prescribed half year period, exclude certain imported motor cars unless specific exceptions apply, and bar depreciation where actual cost has already been allowed as a deduction. Goodwill is excluded from depreciable asset blocks and specific apportionment rules apply on succession, amalgamation, demerger or conversion, while taxpayers under certain concessional tax options face capped depreciation treatment.