Under Section 32 ITA 1961, DEPRECIATION is allowed as a deduction on:

Question

Accepted Answer

D. TANGIBLE ASSETS (buildings, machinery, plant, furniture) and INTANGIBLE ASSETS (know-how, patents, copyrights, trademarks, licences, franchises, etc.) owned and used for business

1. Section 32(1) Income Tax Act 1961 allows depreciation on:
2. (a) BUILDINGS, MACHINERY, PLANT, FURNITURE — TANGIBLE assets — owned wholly or partly by the assessee and used for the purpose of business;
3. (b) KNOW-HOW, PATENTS, COPYRIGHTS, TRADEMARKS, LICENCES, FRANCHISES — INTANGIBLE assets (added by Finance Act 2018 for goodwill from FY 2020-21).
4. RATES of depreciation are prescribed in Appendix I to Income Tax Rules 1962.
5. METHODS: Written Down Value (WDV) is the standard; Straight Line Method (SLM) for power generation units.
6. ADDITIONAL DEPRECIATION (20%) on new plant and machinery used in manufacturing/production.
7. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 32_

Answer

only buildings (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32)

Answer

only cash (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32)

Answer

only equipment (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32) (cf. Income Tax Act 1961, Section 32)