Home › CA Final › taxation › Profits and Gains of Business or Profession › Depreciation under Section 32 is allowed:
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"_
Related questions
Which statement about the deductibility of Securities Transaction Tax (STT) and CommoditieA firm's net profit is Rs 17,00,000 before deducting partner salary of Rs 9,60,000, deprecA tyre manufacturer (opted out of the default regime) instals plant and machinery of Rs 12Unpaid interest of Rs 45,00,000 due to a State Financial Corporation and a bank was converA trader's turnover for P.Y. 2025-26 is Rs 8 crore. Cash receipts are 3 per cent of total An eligible 44AD assessee has turnover of Rs 2,98,50,000, of which Rs 14,00,000 was receivA car purchased on 10.8.2022 for Rs 5,25,000 for personal use was brought into professionaA company claimed Rs 50,00,000 under section 35AD for a warehouse building in A.Y. 2025-26