Clause 18

Clause 18 of Form 3CD is specifically intended for reporting depreciation allowable under the Income Tax Act, 1961.

Since land is a non-depreciable asset, it should generally not be disclosed under Clause 18. This clause is reserved for assets or blocks of assets upon which depreciation is claimable under the Income Tax Act.

Key Points for Consideration:

• Non-Depreciable Assets: Because there is no "0% depreciation" category, and land does not qualify for depreciation, it does not fit the reporting requirements of this specific clause.

• Focus of Clause 18: This clause is designed to provide particulars of depreciation allowable on tangible and intangible assets (such as buildings, plant and machinery, furniture, etc.).

• Reporting: If you are unsure about the presentation in the audit report, you may include a note in your audit report (e.g., in the observations or as an annexure) clarifying that the "Fixed Assets" figure in the balance sheet includes land, which is excluded from Clause 18 as it is a non-depreciable asset.

Summary: Do not include land in Clause 18, as it is a non-depreciable asset; only assets eligible for depreciation under the Income Tax Act should be reported here.