Depreciation
Definition
Annual reduction in value of a business asset, allowed as a deduction under Section 32 of the Income Tax Act.
In Context
Applicable rates: Laptop/computers (40%), furniture (10%), motor vehicles (15%), general plant/machinery (15%). Asset cost must exceed ₹5,000 to qualify. First-year depreciation is 50% of annual rate if purchased after October 3.
Related Terms
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