Section 32 → Section 33
Depreciation
Quick Answer
Section 32 of the Income Tax Act, 1961 (Depreciation) corresponds to Section 33 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 32
Provision Summary
Allows depreciation on tangible (buildings, machinery) and intangible (know-how, patents) assets based on Block of Assets concept.
Sec 33
Provision Summary
Retained. However, goodwill of a business or profession is completely and explicitly removed from the block of depreciable intangible assets.
Key Changes & Highlights
- Additional depreciation for new manufacturing units restricted and phased out to align with corporate tax rate cuts.
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Frequently Asked Questions
What does Section 32 of the Income Tax Act 1961 deal with?
Section 32 (Depreciation) Allows depreciation on tangible (buildings, machinery) and intangible (know-how, patents) assets based on Block of Assets concept.
What is the new section number for Section 32 under the Direct Tax Code 2025?
Section 32 of the ITA 1961 maps to Section 33 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 32 under the new tax code?
Section 32 is marked as "Retained" with status "Modified". Impact: Critical - Governs massive capital expenditure write-offs.
What are the key changes to Section 32 under DTC 2025?
Additional depreciation for new manufacturing units restricted and phased out to align with corporate tax rate cuts.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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