Depreciation

Tax Glossary Definition

Depreciation

Depreciation – Depreciation is the gradual allocation of a tangible asset’s cost across its estimated useful life, reflecting the reduction in value caused by usage, wear and tear, or obsolescence. It ensures that the asset’s cost is systematically matched with the revenue it helps to produce, thereby reducing taxable income over time.

Example: A machine purchased for ₹5,00,000 with a 10-year useful life would record ₹50,000 as annual depreciation under the straight-line method.

India's Most Trusted
Pro Tax Filer

Discover why we're one of India's most trusted Pro Tax Filers, built on a foundation of accuracy and reliability.

  • We ensure maximum tax benefits.

  • Taxes? Handled by our CAs and experts.

  • Reliable, year-round tax support at no cost.

  • Satisfaction or your money back came twice.

Start Filing

Scan the QR code to Download the app

Mobile App Available on:

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App

Have Questions? Let’s Talk!

Chat With Us

Scan to chat

Scan QR Code

OR
Start Chat
Mobile Apps Available On
This feature is available on our mobile app. Get the app now to access this feature!

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App