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Depreciation under Section 32 is allowed:
AAt rates fixed by AO
BOn straight-line basis only (per relevant Section)
CAt prescribed rates on WDV/block of assets
DOnly on tangible assets
Answer & Solution
Correct answer: C. At prescribed rates on WDV/block of assets
1. Section 32 allows depreciation at rates in Appendix I of Income-tax Rules.
2. Depreciation is on WDV of the block of assets.
3. Allowed on tangible (buildings, machinery) AND intangible assets (know-how, patents, copyrights).
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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