Clause 36 - Computation of depreciation - Direct Taxes Code Bill, 2009

Computation of depreciation 36. (1) The amount of depreciation of business capital assets referred to in section 35 shall be the aggregate of the following :- (a) such percentage of the adjusted value of any block of assets as specified in the Fifteenth Schedule, in respect of all the business capital assets forming part of the relevant block of assets specified therein; and (b) nil, in respect of any other business capital asset not forming part of any block of assets specified in the Fifteenth Schedule. (2) The depreciation allowance on assets referred to in section 35 shall, regardless of the fact that all business capital assets in any block of assets have ceased to exist by reason of being demolished, destroyed, discarded or transferred, be allowed to a person in respect of the block of asset if the adjusted value of the block of assets is greater than zero. (3) The provision of sub-section (2) shall not apply to any block of asset in respect of which the percentage specified in the Fifteenth Schedule for computing depreciation under sub-section (1) is zero. (4) The depreciation in respect of any business capital asset shall, regardless of anything to the contrary contained in any other provision of the Code, be deemed to have been actually allowed if,- (a) the asset does not form part of any block of assets specified in the Fifteenth Schedule; or (b) the expenditure incurred for acquiring the asset has been allowed as a deduction under any provision of this Code.