Depreciation - (New) Section 33 / (Old) Section 32

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....duction in respect of depreciation shall be such percentage of its written down value • (b) Partial business use - If asset is not fully used for business, depreciation is proportionately reduced • (c) Double deduction not allowed - when deduction of actual cost in respect of any machinery or plant has been allowed under section 54, no deduction under this sub-section shall be allowed. Rate of Depreciation  Rule 25(1): General rule for depreciation • Depreciation is allowed under section 33(3). • It applies to a "block of assets" (group of similar assets like machinery, buildings, etc.). • The rate of depreciation is: • Taken from Appendi....

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....s based on number of days for which assets were used by the following:-- • (a) predecessor and successor, in case of such succession; or • (b) amalgamating company and the amalgamated company in case of an amalgamation; or • (c) demerged company and the resulting company in case of a demerger. Sub-section (6): Leasehold improvements • Even if building is not owned, but is held on lease or by any other right of occupancy is used for the purposes of business or profession of the assessee • if any incur any capital expenditure on construction of any structure or any work by way of renovation, extension or improvement to such building • such str....

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.... Temporary Structure 40% Furniture & Fitting  10% Plant & Machinery   i) Motors Cars,    a) other than used in a business of running them on hire.         - Acquired & put to use between 23.08.19 to 31.03.20    b) Used in a business of running them on hire.         - Acquired & put to use between 23.08.19 to 31.03.20 15% 30% 30% 45% Renewable Energy Devices- i. Being wind mills and any specifically designed devices which run on wind mills installed on or after 1-4-2014 ii. Being any special devices including electric generators and pumps running on wind energy installed on or after 1-4-2014 ....

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....tion but not depreciation.[Circular No. 9/2014, dated April 23, 2014] Explanation 5 to Section 32(1): Mandatory to claim depreciation Depreciation shall be allowed to the assessee whether or not the assessee has claimed deduction in respect of depreciation in computing his total income. Depreciation on Goodwill of Business and Profession [ Amendment by FA 2021, w.e.f. AY 2021-22] • Section 2(11) has been amended to provide that 'block of asset' shall not include goodwill of business or profession; • section 32(1)(ii) has been amended to provide that goodwill of a business or profession shall not be considered as an asset for the purpose of said clause and therefore not eligible for ....

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.... • Restriction applies only in the year of acquisition i.e. put to use for less than 180 days in the year of acquisition.   No depreciation on assets whose actual cost allowed as deduction under Section 42. Proviso to Section 32(1): Depreciation in case of succession, amalgamation and demerger and conversion of company into LLP • In case of succession, amalgamation and demerger • Depreciation is allowed to Predecessor/ Amalgamating/ Demerged Co. AND • to Successor/ Amalgamated/ Resulting Co. • in the ratio of the number of days for which the assets were used by them • in the precious year in which succession/ amalgamation/ demerger takes plac....