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.
No comments:
Post a Comment