Depreciation rate software

Depreciation Rate on Software under the Income-tax Act The depreciation rate on software under the Income-tax Act, 1961, is as follows: -

*Computer Software*: Computer software is considered an intangible asset and is eligible for depreciation at a rate of 25% under Section 32 of the Income-tax Act. -

*Block of Assets*: Software falls under the block of assets known as "intangible assets," which includes assets like patents, copyrights, and trademarks. -

*Actual Cost*: The depreciation is calculated on the actual cost of the software, which includes the purchase price and any other costs incurred to bring the software into use. 

Additional Considerations - *Written Down Value (WDV) Method*: Depreciation on software is calculated using the Written Down Value (WDV) method, where the depreciation is calculated on the reducing balance of the asset. -

*Conditions for Claim*: To claim depreciation on software, the asset should be owned by the taxpayer, used for business purposes, and the ownership should be evidenced by a valid agreement or invoice .

       Before applying Depreciation ,you also check have you taken input tax credit ( ITC) on Such intangible  Asset which was  Capitalise in the book's of Accounts, because as per section 16(3) of the CGST Act 2017 , if you claim input tax credit , depreciation on tax component shall not be allowed, so you must.  refer section 16(3)  of the  CGST Act, before claiming depreciation . Consider this is an addtional infomation  not relevent to your query , however its very  useful . 

Depreciation rate on printer 

Depreciation rate on printer