Income Tax Act Section 32 (Block of Assets)
Section 32 of the Income Tax Act, 1961 governs depreciation for tax purposes using the written-down value (WDV) method applied to a 'block of assets' — a group of assets in the same class with the same depreciation rate.
Unlike Schedule II's useful-life approach, Section 32 depreciates a block of assets — not individual assets — at a prescribed WDV rate. When assets are added to or disposed from a block during the year, the block's opening WDV is adjusted before applying the rate.
Because Schedule II (books) and Section 32 (tax) use different methods and bases, the same asset can have two different depreciation figures — one for the financial statements, one for the tax return — and companies must track both in parallel.
How AssetIQ helps
AssetIQ runs Section 32 block-of-assets depreciation natively, in parallel with Schedule II, for every legal entity — including the 180-day rule — so tax and financial reporting never have to be reconciled by hand.
See the Depreciation & Compliance Agent →