depreciation rates applicability

Depreciation refers to the decrease in value of an asset over a period of time. During the computation of gains and profits from profession or business, taxpayers are allowed to claim depreciation on assets that were acquired and used in their profession or business. The Income Tax Act, 1962, has made it mandatory to calculate depreciation. Each year depreciation notification comes if there is any change and we have to apply the prescribed rate during the financial year.