\n| Intangible Assets (Patents, Trademarks, Licenses, Franchises, etc.)<\/th>\n | 25%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>Key Rules and Conditions related to depreciation\u00a0<\/span><\/span><\/span><\/h2>\n\n \n- 180-Day Rule: If an asset is acquired and put to use for less than 180 days during the financial year, only 50% of the normal depreciation can be claimed in that year.<\/li>\n
- Additional Depreciation: Manufacturing and power-generation businesses can claim an additional 20% depreciation on eligible new plant and machinery, and If the asset is used for less than 180 days, additional depreciation is restricted to 10% in the year of acquisition.<\/li>\n
- Block of Assets Concept: Depreciation is not calculated asset-wise. Similar assets carrying the same depreciation rate are grouped into a block of assets, and depreciation is calculated on the aggregate WDV of that block.<\/li>\n
- Straight-Line Method (SLM) : While WDV is the standard method, businesses engaged in the generation or distribution of power may opt for the Straight-Line Method (SLM).<\/li>\n
- Personal Use Assets: Depreciation is allowed only on assets used for business or professional purposes. Assets used exclusively for personal purposes are not eligible for depreciation.<\/li>\n
- Written Down Value Method: Depreciation under the Income Tax Act is generally allowed on the WDV method, where depreciation is calculated on the opening WDV of the block of assets.<\/li>\n<\/ul>\n<\/div>\n
\n- Assets Used for Less Than 180 Days: If an asset is acquired during the financial year and is put to use for less than 180 days, only 50% of the applicable depreciation can be claimed in that year. Examples: A computer\u00a0purchased and used for less than 180 days:<\/span>\n
\n- Normal rate = 40%<\/li>\n
- Eligible depreciation = 20%<\/li>\n<\/ul>\n<\/li>\n
- Plant & machinery used for less than 180 days:\n
\n- Normal rate = 15%<\/li>\n
- Eligible depreciation = 7.5%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
<\/span>Quick WDV depreciation rates<\/strong> applicable under the Income Tax Rules:<\/span><\/span><\/h2>\nDepreciation u\/s 32 helps businesses reduce taxable income by recognizing the wear and tear of business assets. The written-down value method, block of assets concept, 180-day rule, and additional depreciation provisions are important factors that taxpayers should consider while computing depreciation and preparing their income tax returns. details about depreciation rate here under :<\/p>\n \n- Residential Building \u2013 5%<\/strong><\/li>\n
- Commercial Building \u2013 10%<\/strong><\/li>\n
- Furniture & Fixtures \u2013 10%<\/strong><\/li>\n
- Plant & Machinery \u2013 15%<\/strong><\/li>\n
- Motor Car (Business Use) \u2013 15%<\/strong><\/li>\n
- Motor Vehicle Used on Hire \u2013 30%<\/strong><\/li>\n
- Computers & Software \u2013 40%<\/strong><\/li>\n
- Electric Vehicles \u2013 40%<\/strong><\/li>\n
- Patents, Trademarks & Other Intangible Assets \u2013 25%<\/strong><\/li>\n
- These rates are widely used for income-tax computation, tax audits, and business income tax return filings under the block-of-assets concept.<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
All about Depreciation Rates Under the Income-tax Act, 1961 Depreciation Under Section 32 of the Income Tax Act, 1961\u00a0 Section 32 of the Income Tax Act allows businesses and professionals to claim depreciation as a tax deduction on assets used for business or professional purposes. Depreciation is generally calculated using the written-down value method, where …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10608"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=10608"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10608\/revisions"}],"predecessor-version":[{"id":10613,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10608\/revisions\/10613"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |
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