For Indian business owners, depreciation is not merely an accounting concept. It is a critical tool of tax planning and compliance<\/strong> that directly reduces taxable income, lowers tax liability, and improves the financial health of the business. Used correctly, depreciation can significantly reduce the tax outflow of a business in its early years when capital expenditure is high. Used incorrectly, or ignored entirely, it results in a business paying more tax than it legally owes and maintaining inaccurate financial records.<\/p>\n\n\n\n In India, depreciation is governed by two separate frameworks that apply simultaneously and independently of each other:<\/p>\n\n\n\n \u2022 The Income Tax Act, 1961<\/strong>, which governs depreciation for the purpose of computing taxable income and determining tax liability \u2022 The Companies Act, 2013<\/strong>, which governs depreciation for the purpose of preparing financial statements and presenting a true and fair view of a company’s financial position<\/p>\n\n\n\n These two frameworks use different methodologies, different rates, and serve different purposes. A business owner who confuses the two, or who assumes that the depreciation charged in the books of account is automatically the same as the depreciation allowable for income tax purposes, is likely to make errors in both financial reporting and tax filing.<\/p>\n\n\n\n This guide provides a complete, practical explanation of depreciation rules for Indian business owners in 2026, covering the income tax framework, the Companies Act framework, the methods of calculating depreciation, the rates applicable to different asset classes, the concept of block of assets, the treatment of additions and disposals, and the common mistakes that cost businesses money and create compliance risk.<\/p>\n\n\n\n Depreciation is the systematic allocation of the cost of a tangible or intangible asset over its useful life. The underlying principle is straightforward: a machine purchased for \u20b910,00,000 that has a useful life of 10 years does not provide its entire economic benefit in the year of purchase. It provides benefit over 10 years, and the cost should therefore be recognised as an expense over those 10 years, not in one lump sum at the time of purchase.<\/p>\n\n\n\n For income tax purposes<\/strong> in India, Section 32 of the Income Tax Act, 1961 allows a deduction for depreciation on assets owned and used for the purposes of business or profession. This deduction reduces the taxable income of the business, and therefore reduces the income tax payable. The depreciation deduction under the Income Tax Act follows strict rules regarding:<\/p>\n\n\n\n \u2022 Which assets qualify for depreciation \u2022 The method of calculating depreciation \u2022 The rates at which different assets are depreciated \u2022 The treatment of assets acquired or disposed of during the year \u2022 The carry forward of unabsorbed depreciation<\/p>\n\n\n\n For financial reporting purposes<\/strong> under the Companies Act, 2013, Schedule II prescribes the useful lives of different categories of assets, and companies are required to charge depreciation in their financial statements based on those useful lives. The depreciation charged in the books of account may differ from the depreciation allowable under the Income Tax Act, and this difference gives rise to deferred tax entries in the financial statements.<\/p>\n\n\n\n Understanding the distinction between these two frameworks is essential for every Indian business owner:<\/p>\n\n\n\n \u2022 Uses the Written Down Value (WDV) method<\/strong> as the primary method of depreciation for most assets \u2022 Groups assets into blocks<\/strong> rather than treating each asset individually \u2022 Applies prescribed rates<\/strong> of depreciation to the WDV of each block at the end of the year \u2022 Allows an additional depreciation<\/strong> deduction of 20% of the cost of new plant and machinery in the year of acquisition (subject to conditions) \u2022 Allows a deduction for scientific research assets<\/strong>, intangible assets<\/strong>, and certain other special categories \u2022 Permits the carry forward of unabsorbed depreciation<\/strong> indefinitely until it is fully set off against future income<\/p>\n\n\n\n \u2022 Requires companies to charge depreciation based on the useful life<\/strong> of the asset as prescribed in Schedule II \u2022 Allows either the Straight Line Method (SLM)<\/strong> or the Written Down Value method (WDV)<\/strong>, with SLM being the more commonly used method in financial statements \u2022 Does not group assets into blocks; each asset or category of assets is treated individually \u2022 Requires the residual value<\/strong> of the asset (typically 5% of the original cost) to be retained at the end of the asset’s useful life and not depreciated \u2022 Allows companies to use a different useful life or residual value if they can justify it based on technical assessment<\/p>\n\n\n\n The WDV method applies the depreciation rate to the reducing balance<\/strong> of the asset each year. Because the depreciation is calculated on the declining book value, the depreciation charge is highest in the first year and reduces progressively over the life of the asset.<\/p>\n\n\n\n Example:<\/strong> \u2022 Cost of machine: \u20b910,00,000 \u2022 WDV depreciation rate: 15%<\/p>\n\n\n\n \u2022 Year 1: Depreciation = 15% \u00d7 \u20b910,00,000 = \u20b91,50,000 | Closing WDV = \u20b98,50,000 \u2022 Year 2: Depreciation = 15% \u00d7 \u20b98,50,000 = \u20b91,27,500 | Closing WDV = \u20b97,22,500 \u2022 Year 3: Depreciation = 15% \u00d7 \u20b97,22,500 = \u20b91,08,375 | Closing WDV = \u20b96,14,125<\/p>\n\n\n\n The WDV method is mandated by the Income Tax Act, 1961 for most assets.<\/p>\n\n\n\n The SLM method spreads the cost of the asset equally<\/strong> over its useful life. The same amount of depreciation is charged every year.<\/p>\n\n\n\n Example:<\/strong> \u2022 Cost of machine: \u20b910,00,000 \u2022 Useful life: 10 years \u2022 Residual value: \u20b950,000 (5%)<\/p>\n\n\n\n \u2022 Annual Depreciation = (\u20b910,00,000 \u2212 \u20b950,000) \u00f7 10 = \u20b995,000 per year<\/p>\n\n\n\n The SLM method is commonly used for financial reporting under the Companies Act, 2013.<\/p>\n\n\n\n One of the most distinctive features of the income tax depreciation framework is the concept of block of assets<\/strong>. Under the Income Tax Act, assets are not depreciated individually. Instead, all assets of the same class and the same depreciation rate are grouped together into a single block<\/strong>, and depreciation is calculated on the aggregate WDV of the entire block.<\/p>\n\n\n\n This has several important practical consequences:<\/p>\n\n\n\n \u2022 When a new asset is added to the block during the year, its cost is added to the WDV of the block \u2022 When an asset belonging to the block is sold, the sale proceeds are deducted from the WDV of the block \u2022 If the sale proceeds exceed the WDV of the block, the excess is treated as a short-term capital gain<\/strong> (referred to as a deemed capital gain<\/strong> under Section 50) \u2022 If all assets in a block are sold and the WDV of the block exceeds the sale proceeds, the excess is treated as a terminal depreciation<\/strong> or short-term capital loss<\/strong> \u2022 Depreciation is calculated on the closing WDV of the block<\/strong> after all additions and deductions for the year<\/p>\n\n\n\n The Income Tax Act prescribes the following primary blocks and rates (these rates are as per the Income Tax Rules, 1962, and are subject to change through government notifications):<\/p>\n\n\n\n Block 1 \u2013 Buildings<\/strong> \u2022 Residential buildings (other than hotels and boarding houses): 5%<\/strong> \u2022 Non-residential buildings, including office buildings, factories, and godowns: 10%<\/strong> \u2022 Temporary structures: 40%<\/strong><\/p>\n\n\n\n Block 2 \u2013 Furniture and Fittings<\/strong> \u2022 All furniture and fittings including electrical fittings: 10%<\/strong><\/p>\n\n\n\n Block 3 \u2013 Plant and Machinery<\/strong> \u2022 General plant and machinery not otherwise specified: 15%<\/strong> \u2022 Computers and computer software: 40%<\/strong> \u2022 Motor cars (other than those used in a business of running on hire): 15%<\/strong> \u2022 Motor buses, motor lorries, and motor taxis used in the business of running on hire: 30%<\/strong> \u2022 Ships: 20%<\/strong> \u2022 Aircraft: 40%<\/strong> \u2022 Energy-saving devices and pollution control equipment: 40%<\/strong> \u2022 Moulds used in rubber and plastic goods factories: 30%<\/strong><\/p>\n\n\n\n Block 4 \u2013 Intangible Assets<\/strong> \u2022 Know-how, patents, copyrights, trademarks, licences, franchises, and any other business or commercial right of similar nature: 25%<\/strong><\/p>\n\n\n\n Under the Income Tax Act, if an asset is put to use for less than 180 days<\/strong> during the financial year in which it is acquired, the depreciation allowable for that year is 50% of the normal depreciation<\/strong>. If the asset is put to use for 180 days or more, full depreciation is allowable for the year.<\/p>\n\n\n\n Example:<\/strong> \u2022 A machine is purchased and put to use on 1 December 2025 \u2022 The financial year ends on 31 March 2026 \u2022 The machine is used for approximately 120 days, which is less than 180 days \u2022 Depreciation allowable for FY 2025-26 = 50% of normal depreciation<\/p>\n\n\n\n This rule applies only to the year of acquisition<\/strong>. From the next financial year onwards, full depreciation is charged regardless of when the asset was put to use.<\/p>\n\n\n\n In addition to normal depreciation, the Income Tax Act allows a deduction for additional depreciation<\/strong> of 20% of the cost<\/strong> of new plant and machinery acquired and installed by a manufacturing or power generation business, subject to the following conditions:<\/p>\n\n\n\n \u2022 The additional depreciation is available only on new<\/strong> plant and machinery, not second-hand assets \u2022 It is not available on office appliances, road transport vehicles, ships, aircraft, or any asset used in a business of generation or distribution of power \u2022 If the asset is put to use for less than 180 days in the year of acquisition, only 10% additional depreciation<\/strong> (i.e., 50% of 20%) is allowable in that year, and the remaining 10% is allowable in the subsequent year \u2022 The additional depreciation is available only to manufacturing companies and certain other specified businesses<\/p>\n\n\n\n If the depreciation allowable in a particular year exceeds the business income of that year (i.e., the business is in a loss position after charging depreciation), the excess depreciation is treated as unabsorbed depreciation<\/strong>. The key features of unabsorbed depreciation are:<\/p>\n\n\n\n \u2022 It can be carried forward indefinitely<\/strong> (there is no time limit for carry forward, unlike business losses which can be carried forward for only 8 years) \u2022 It can be set off against income from any head of income<\/strong> in future years, not just business income \u2022 It is given priority in set-off \u2014 current year’s depreciation is set off first, followed by brought-forward unabsorbed depreciation<\/p>\n\n\n\n Schedule II of the Companies Act, 2013 prescribes the useful life<\/strong> of different categories of assets for the purpose of calculating depreciation in a company’s financial statements. Companies must charge depreciation over the useful life prescribed in Schedule II, or justify a different useful life based on technical assessment.<\/p>\n\n\n\n Key useful lives prescribed under Schedule II include:<\/p>\n\n\n\n Buildings<\/strong> \u2022 Factory and non-factory buildings: 30 years<\/strong> \u2022 Temporary structures: 3 years<\/strong> \u2022 Fences, wells, tube wells: 5 years<\/strong><\/p>\n\n\n\n Plant and Equipment<\/strong> \u2022 General plant and machinery: 15 years<\/strong> \u2022 Computers and data processing units: 3 years<\/strong> \u2022 Servers and networks: 6 years<\/strong><\/p>\n\n\n\n Furniture and Fixtures<\/strong> \u2022 General furniture and fittings: 10 years<\/strong> \u2022 Furniture used in hotels, restaurants, or boarding houses: 8 years<\/strong><\/p>\n\n\n\n Vehicles<\/strong> \u2022 Motor cycles, scooters, and other mopeds: 10 years<\/strong> \u2022 Motor buses, motor lorries, and motor cars used in a business of running on hire: 6 years<\/strong> \u2022 Other motor cars: 8 years<\/strong><\/p>\n\n\n\n Intangible Assets<\/strong> \u2022 The Companies Act does not prescribe specific useful lives for intangible assets. Companies are required to assess and amortise intangible assets over their estimated useful lives in accordance with applicable Accounting Standards (Ind AS 38 for Ind AS companies, AS 26 for companies following Indian GAAP).<\/p>\n\n\n\n Under the Companies Act framework, companies must assume a residual value<\/strong> of at least 5% of the original cost of the asset. This means that only 95% of the asset’s cost is depreciated over its useful life. The remaining 5% is retained as the asset’s residual value in the books of account.<\/p>\n\n\n\n For significant assets where different components have different useful lives, the Companies Act framework requires component accounting<\/strong>, where each significant component of the asset is depreciated separately over its own useful life. This is particularly relevant for large machinery, aircraft, and ships where components such as engines, airframes, or hulls have different replacement cycles.<\/p>\n\n\n\n A critical distinction in the context of depreciation is between capital expenditure<\/strong> and revenue expenditure<\/strong>:<\/p>\n\n\n\n \u2022 Capital expenditure<\/strong> is expenditure on the acquisition, creation, or improvement of an asset that provides benefit over more than one accounting period. Capital expenditure is not deductible as an expense in the year of incurrence; instead, it is capitalised as an asset and depreciated over its useful life.<\/p>\n\n\n\n \u2022 Revenue expenditure<\/strong> is expenditure that provides benefit only in the current accounting period, such as repairs and maintenance, consumables, and routine operating costs. Revenue expenditure is deductible as an expense in the year in which it is incurred.<\/p>\n\n\n\n Misclassifying capital expenditure as revenue expenditure (or vice versa) is a common tax audit issue and can result in disallowance of deductions and assessment of additional tax.<\/p>\n\n\n\n The key test for distinguishing capital from revenue expenditure is whether the expenditure creates a new asset, brings into existence a new advantage, or merely maintains or restores the existing asset or advantage. Expenditure that upgrades an asset’s capability beyond its original specification is generally capital expenditure, while expenditure that merely restores the asset to its original working condition is generally revenue expenditure.<\/p>\n\n\n\n \u2022 Under the Income Tax Act: 40% WDV<\/strong> depreciation \u2022 Under the Companies Act: Computers \u2014 3 years<\/strong> useful life; Servers \u2014 6 years<\/strong> useful life \u2022 Purchased software is treated as an intangible asset and amortised over its useful life; for income tax purposes, software is included in the block of intangible assets at 25% WDV<\/strong><\/p>\n\n\n\n \u2022 Motor cars (not for hire) under the Income Tax Act: 15% WDV<\/strong> \u2022 Commercial vehicles used for hire under the Income Tax Act: 30% WDV<\/strong> \u2022 Under the Companies Act: Motor cars \u2014 8 years<\/strong> useful life; commercial vehicles used for hire \u2014 6 years<\/strong> useful life \u2022 Vehicles used partly for business and partly for personal use: only the business use proportion is allowable as depreciation for income tax purposes<\/p>\n\n\n\n \u2022 Under the Income Tax Act: Residential \u2014 5% WDV<\/strong>; Non-residential \u2014 10% WDV<\/strong> \u2022 Under the Companies Act: Factory buildings \u2014 30 years<\/strong> useful life \u2022 Land is not depreciable<\/strong> under either framework. Only the building or structure on the land is depreciable. The cost of land must be separately identified and excluded from the depreciable base.<\/p>\n\n\n\n \u2022 For finance leases<\/strong>, the lessee recognises the asset on its balance sheet and charges depreciation \u2022 For operating leases<\/strong>, the asset remains on the lessor’s balance sheet, and the lessor charges depreciation \u2022 Under Ind AS 16, most leases are recognised on the lessee’s balance sheet with a corresponding right-of-use asset, which is depreciated over the lease term or the asset’s useful life, whichever is shorter<\/p>\n\n\n\n Not maintaining an asset register:<\/strong> Businesses that do not maintain a proper asset register with details of each asset, its cost, date of acquisition, date of commissioning, and WDV are unable to accurately compute depreciation and are vulnerable to disallowance in tax assessments.<\/p>\n\n\n\n Claiming depreciation on assets not used for business:<\/strong> Depreciation under the Income Tax Act is allowable only on assets used for the purposes of business or profession<\/strong>. Assets that are owned by the business but not used for business purposes, including idle assets, assets under installation, and assets used for personal purposes, do not qualify for depreciation.<\/p>\n\n\n\n Depreciating land:<\/strong> Land is not a depreciable asset. Its value does not diminish over time in the same way as other assets. Claiming depreciation on the cost of land is an error that will be disallowed in assessment.<\/p>\n\n\n\n Incorrect classification of assets into blocks:<\/strong> Each asset must be correctly classified into its appropriate block based on the nature of the asset and the applicable depreciation rate. Incorrect classification results in depreciation being claimed at the wrong rate.<\/p>\n\n\n\n Not applying the half-year rule correctly:<\/strong> The 50% restriction on depreciation for assets used for less than 180 days applies in the year of acquisition<\/strong> and is frequently misapplied or overlooked entirely.<\/p>\n\n\n\n Claiming depreciation on fully written off assets:<\/strong> Once the WDV of a block of assets reaches zero or the block ceases to exist (because all assets in the block have been sold), no further depreciation can be claimed on that block.<\/p>\n\n\n\n Not claiming additional depreciation:<\/strong> Manufacturing businesses frequently overlook the additional depreciation benefit available under Section 32(1)(iia), particularly on assets acquired close to the year-end where the 180-day condition may require the additional depreciation to be split across two years.<\/p>\n\n\n\n Mixing income tax and Companies Act depreciation:<\/strong> Depreciation for income tax purposes is calculated on the WDV of blocks of assets as per the Income Tax Rules. Depreciation for financial reporting purposes is calculated on individual assets over their Schedule II useful lives. These are separate calculations and one cannot be substituted for the other.<\/p>\n\n\n\n Because depreciation for income tax purposes (WDV method, Income Tax Act rates) and depreciation for financial reporting purposes (SLM method, Schedule II useful lives) almost always differ, a timing difference arises between the tax base of the asset and its carrying value in the financial statements. This timing difference gives rise to a deferred tax liability or asset<\/strong> in the company’s financial statements.<\/p>\n\n\n\n \u2022 Where income tax depreciation exceeds book depreciation in the early years of an asset’s life (which is typical under the WDV method), the tax base of the asset is lower than its book value. This creates a deferred tax liability<\/strong>, representing tax that will be payable in future years when the timing difference reverses.<\/p>\n\n\n\n \u2022 Where book depreciation exceeds income tax depreciation (which can occur in the later years of an asset’s life or where Schedule II useful lives are shorter than the income tax depreciation period), a deferred tax asset<\/strong> arises.<\/p>\n\n\n\n Deferred tax accounting is required for all companies following Ind AS and Indian GAAP and must be reflected in the company’s financial statements.<\/p>\n\n\n\n Can a partnership firm or proprietorship claim depreciation under the Income Tax Act?<\/strong> Yes. Depreciation under Section 32 of the Income Tax Act is available to all taxpayers carrying on a business or profession, including companies, partnership firms, LLPs, and individual proprietors. The same blocks of assets and depreciation rates apply.<\/p>\n\n\n\n What happens to depreciation if the business makes a loss?<\/strong> If the depreciation allowable exceeds the business income, the excess becomes unabsorbed depreciation that can be carried forward indefinitely and set off against income from any head in future years. There is no time limit on carry forward of unabsorbed depreciation, unlike the 8-year limit applicable to business losses.<\/p>\n\n\n\n Can depreciation be claimed on a car used partly for personal purposes?<\/strong> Only the proportion of the car’s use that is attributable to business can be claimed as depreciation. The business use proportion must be documented and justified. If the car is used 60% for business and 40% for personal purposes, only 60% of the depreciation is allowable.<\/p>\n\n\n\n Is goodwill a depreciable asset under the Income Tax Act?<\/strong> Following the amendment introduced by the Finance Act, 2021, goodwill is no longer a depreciable asset under the Income Tax Act, 1961. Goodwill acquired on or after 1 April 2021 cannot be depreciated. Goodwill that was part of a block of intangible assets as on 1 April 2020 is treated as a separate block and any depreciation thereon is governed by the transitional provisions.<\/p>\n\n\n\n What is the depreciation rate for mobile phones used for business?<\/strong> Mobile phones are classified as part of plant and machinery. If they qualify as computers or computer peripherals, they may attract the 40% depreciation rate. Otherwise, they are classified under the general plant and machinery block at 15%. The Income Tax Department’s interpretation of mobile phones as computers or general plant and machinery has been subject to some litigation and professional opinion varies.<\/p>\n\n\n\n Can a business claim depreciation on an asset it does not legally own but uses under a finance lease?<\/strong> Under the income tax framework, depreciation is available to the owner<\/strong> of the asset. In the case of a finance lease, the question of who is treated as the owner for depreciation purposes depends on the terms of the lease. Generally, if the lease is structured such that ownership effectively transfers to the lessee, the lessee may be treated as the owner for depreciation purposes.<\/p>\n\n\n\n Depreciation is one of the most powerful tax deductions available to Indian business owners, yet it is also one of the most frequently misunderstood and misapplied. The dual framework of the Income Tax Act and the Companies Act, the concept of block of assets, the distinction between WDV and SLM methods, the half-year rule, additional depreciation, and the treatment of unabsorbed depreciation together create a complex but navigable landscape.<\/p>\n\n\n\n For the business owner, the practical imperatives are clear:<\/p>\n\n\n\n \u2022 Maintain a proper asset register<\/strong> with complete details of every asset owned by the business \u2022 Correctly classify every asset<\/strong> into the appropriate income tax block and the appropriate Companies Act category \u2022 Apply the half-year rule<\/strong> accurately in the year of acquisition \u2022 Claim additional depreciation<\/strong> wherever it is available \u2022 Never depreciate land<\/strong>, and always separate land cost from building cost \u2022 Reconcile income tax depreciation and book depreciation<\/strong> and account for the resulting deferred tax \u2022 File on time<\/strong> and claim the full depreciation available to the business every year<\/p>\n\n\n\n Depreciation deductions foregone cannot typically be reclaimed in subsequent years. Every rupee of legitimate depreciation that goes unclaimed is a rupee of additional tax paid unnecessarily.<\/p>\n\n\n\n Know your assets. Know your rates. Claim what the law allows. And manage your business tax position with the same rigour you bring to your business operations.<\/strong><\/p>\n\n\n\n \ud83d\udfe1 LegalTax.in<\/strong> provides complete support for income tax filing, depreciation computation, tax planning, financial statement preparation, and all business compliance matters for companies, partnership firms, LLPs, and proprietorships across all sectors in India.<\/p>\n\n\n\n \ud83d\udc49 Income Tax Filing at LegalTax.in<\/a> \ud83d\udc49 Private Limited Company Registration<\/a> \ud83d\udc49 LLP Registration<\/a> \ud83d\udc49 GST Registration and Filing<\/a> \ud83d\udc49 MSME \/ Udyam Registration<\/a> \ud83d\udc49 Partnership Firm Registration<\/a><\/p>\n\n\n\n \ud83d\udfe1 LegalIP.in IT Services<\/strong> \ud83d\udc49 Web Development<\/a> \ud83d\udc49 Custom Website Development<\/a> \ud83d\udc49 E-commerce Website Development<\/a> \ud83d\udc49 SEO Service<\/a> \ud83d\udc49 Digital Marketing<\/a> \ud83d\udc49 Social Media Marketing<\/a><\/p>\n\n\n\n \ud83d\udfe1 Business24Hub: Complete IT Solutions for Startups<\/strong> \ud83d\udc49 Website Development<\/a> \ud83d\udc49 SEO Optimization<\/a> \ud83d\udc49 Google Ads and PPC<\/a> \ud83d\udc49 Social Media Marketing<\/a> \ud83d\udc49 Graphic and Brand Design<\/a> \ud83d\udc49 Email and Content Marketing<\/a><\/p>\n\n\n\n \ud83d\udfe1 Protect Your Business Brand<\/strong> \ud83d\udc49 Trademark Registration at LegalIP.in<\/a> \ud83d\udc49 Copyright Registration at LegalIP.in<\/a> \ud83d\udc49 Design Registration at LegalIP.in<\/a> \ud83d\udc49 Patent Registration at LegalIP.in<\/a><\/p>\n\n\n\n \ud83d\udcde Call Now: +91 9711939395<\/strong> \u2709\ufe0f Email: info@legaltax.in<\/strong> \ud83d\udd50 Free Consultation: Monday to Saturday, 9 AM to 6 PM<\/strong><\/p>\n\n\n\n
\n\n\n\nWhat Is Depreciation and Why Does It Matter for Tax?<\/h2>\n\n\n\n
![\"business\n\"](\"https:\/\/legaltax.in\/blogs\/wp-content\/uploads\/2026\/06\/111-img-1024x683.png\" "\\"\\"")
<\/figure>\n\n\n\n
\n\n\n\nThe Two Frameworks: Income Tax vs. Companies Act<\/h2>\n\n\n\n
Income Tax Framework (Section 32, Income Tax Act, 1961)<\/h3>\n\n\n\n
Companies Act Framework (Schedule II, Companies Act, 2013)<\/h3>\n\n\n\n
\n\n\n\nMethods of Calculating Depreciation<\/h2>\n\n\n\n
1. Written Down Value (WDV) Method<\/h3>\n\n\n\n
2. Straight Line Method (SLM)<\/h3>\n\n\n\n
\n\n\n\nDepreciation Under the Income Tax Act, 1961<\/h2>\n\n\n\n
The Concept of Block of Assets<\/h3>\n\n\n\n
Blocks of Assets and Applicable Rates<\/h3>\n\n\n\n
Depreciation on New Assets: The Half-Year Rule<\/h3>\n\n\n\n
Additional Depreciation Under Section 32(1)(iia)<\/h3>\n\n\n\n
Unabsorbed Depreciation: Carry Forward Rules<\/h3>\n\n\n\n
\n\n\n\nDepreciation Under the Companies Act, 2013<\/h2>\n\n\n\n
Schedule II and Useful Life<\/h3>\n\n\n\n
Residual Value<\/h3>\n\n\n\n
Component Accounting<\/h3>\n\n\n\n
\n\n\n\nTreatment of Capital Expenditure vs. Revenue Expenditure<\/h2>\n\n\n\n
\n\n\n\nDepreciation on Specific Asset Categories<\/h2>\n\n\n\n
Computers and Software<\/h3>\n\n\n\n
Vehicles<\/h3>\n\n\n\n
Buildings<\/h3>\n\n\n\n
Leased Assets<\/h3>\n\n\n\n
\n\n\n\nCommon Mistakes in Claiming Depreciation<\/h2>\n\n\n\n
\n\n\n\nDeferred Tax: The Bridge Between the Two Frameworks<\/h2>\n\n\n\n
\n\n\n\nFrequently Asked Questions<\/h2>\n\n\n\n
\n\n\n\nConclusion<\/h2>\n\n\n\n
\n\n\n\nNeed Help With Depreciation Calculations or Business Tax Compliance?<\/h2>\n\n\n\n
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