Where an eligible asset is acquired and put to use for less than 180 days in the tax year, normal depreciation is restricted to 50% of the prescribed…
Where an eligible asset is acquired and put to use for less than 180 days in the tax year, normal depreciation is restricted to 50% of the prescribed amount for that addition. Both acquisition and actual use must be proved.
The restriction applies to current-year additions, not the entire opening block. Merely installing or invoicing an asset does not always establish business use.
Record acquisition date; establish put-to-use date; allocate addition to 180-day or under-180-day pool; apply 50% rate; reconcile with block sale.
Computer cost ₹4 lakh at 40% rate put to use on 1 January gives ₹80,000 depreciation, not ₹1.6 lakh.
The example is an illustration, not a substitute for the taxpayer's facts. A change in status, period, payment mode, document, city, asset, relationship or scheme can change the result.
Search pages often state a rate or limit without identifying the governing base. The calculation must distinguish gross receipt from taxable profit, tax from TDS, a deduction from an exemption, salary from business income, and an accounting entry from the tax treatment.
| Decision point | Required treatment |
|---|---|
| Legal year | Use the Act, rules and notification effective for the income or transaction period |
| Taxpayer category | Confirm residence, age, entity, employee/business status and regime |
| Calculation base | Use the statutory definition rather than CTC, net bank receipt or accounting label |
| Ceiling or rate | Apply actual-amount, percentage, shared, lifetime and gross-income limits in sequence |
| Documentation | Link every input to an invoice, statement, contract, certificate or official record |
| Final output | Show tax, surcharge, cess, interest and TDS/TCS credits separately |
This page is written around the entities and concepts search engines expect for the topic: business deduction, depreciation, section 33, section 37, cash payment. They are used only where relevant and are connected to the live calculator and knowledge hub rather than repeated mechanically.
For the complete rules on this topic, see the core guide: Business Income Tax Calculator India 2026: Profit-to-Tax Workflow.
See the broader Income-tax Act 2025 study guide hub for related rules and calculators on this topic.
Where an eligible asset is acquired and put to use for less than 180 days in the tax year, normal depreciation is restricted to 50% of the prescribed amount for that addition. Both acquisition and actual use must be proved.
Finin2min rule: establish eligibility, calculate transparently, and preserve an audit trail.
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.