Depreciation
is one of the major expenditures which is allowed under the head profits and
gains from business or profession.
It
is allowed on different , Block of Assets at specified rates on the basis of
written down value.
Some
major changes have been introduced in the provision relating to depreciation.
With
effect from A.Y. 1999-2000 an important amendment was made to provide
depreciation on intangible assets also (acquired on or after 1.4.1998).
This
was a step towards simplification of computation of business income. It has
been made mandatory to claim depreciation under Section 32 since A.Y. 2002-03.
Further,
the Finance Act 2002 allowed carried forward of depreciation for indefinite
period to be set off against any income by abolishing the time limit of eight
(8) assessment years.
