Calculation of the written down value (WDV): Clause 41 of Income Tax Bill, 2025 vs. Section 43 of Income-tax Act, 1961

Written down value reforms standardize WDV computation and clarify depreciation and block asset adjustments under the new tax provision.

Clause 41 prescribes a standardized method for computing the written down value of depreciable assets: assets acquired in the tax year are valued at actual cost; earlier-acquired assets at cost less depreciation allowed; blocks of assets by the formula [(A-D)+B-C]-E; carried-forward depreciation is deemed allowed; adjustments are required for years where total income was not computed; mixed agriculture-business income is treated as business for depreciation; and the term 'sold' is referenced to the Act for consistency.