Section 32 of the Income Tax Act?

Answer 1

section 32 of the Indian income tax act deals with depreciation of fixed assets used for the purpose of business during the whole of or a part of a year.

tangible assets being: building, machinery, plant furniture and fittings

intangible assets being: patents, copyrights, trademarks, franchisees and any other business or commercial right of such nature.

rates for depreciation are provided in rule 5(1) of the income tax act ( in case of business engaged in generation and distribution of power rates are provided in rule 5 (1A) )

Eg. if you bought a machine for 100000, rate of depreciation is 15%, then value of your machine at the end of this year will be 100000 - 15% of 100000 = 85000

there are more conditions that apply to an asset in section 32, you can visit incometaxindia.gov.in to read all sections and rules of the act.