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Depreciation on intangible assets such as patents, trademarks and franchises acquired after 31.3.1998 (not being goodwill) is allowed at:
A40 per cent
B15 per cent
C10 per cent
D25 per cent
Answer & Solution
Correct answer: D. 25 per cent
1. Know-how, patents, copyrights, trademarks, licences, franchises and similar commercial rights acquired on or after 1.4.1998 form the intangible block.
2. The prescribed rate for this block is 25%.
3. Goodwill of a business or profession is expressly excluded from depreciable intangible assets, and land is never depreciable.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 27_
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