Question

Under the Income Tax Act, which of the following correctly applies to depreciation under Section 32 for a business asset used in manufacturing?

Q: Answer-Under the Income Tax Act, which of the following correctly applies to depreciation under Section 32...

Section 32 allows depreciation on tangible and intangible assets used in businessprofession. Plant and Machinery used in manufacturing gets 15 depreciation under the Written Down Value WDV method. Straight Line Method SLM is permitted only for power generation undertakings. Land is not eligible for depreciation. Buildings factory get 10 WDV. Goodwill is not eligible for depreciation post Finance Act 2021. Intangible assets like patents, trademarks are eligible for 25 depreciation not 10.