Profits and Gains - Income Tax Notes Part - 04
PROFITS AND GAINS OF BUSINESS OR PROFESSION - I INCOME TAX NOTES PART - 04 PROFITS AND GAINS OF BUSINESS OR PROFESSION - I Depreciation allowance [Sec. 32] Following conditions should be satisfied by the assessee to avail depreciation: 1. Asset must be owned by the assessee. 2. Asset must be used for the purpose of business or profession. 3. Asset should be used during the relevant previous year: Normal depreciation (i.e., full year’s depreciation) is available if an asset is put to use at least for sometime during the previous year. However, where an asset is acquired during the previous year but put to use for the purpose of business or profession for less than 180 days during that year, in such a case, half of the normal depreciation is allowed. 4. Depreciation is available on tangible assets (Building, machinery, plant or furniture) as well as intangible assets (know-how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of s