Section 32 → Section 33
Depreciation
Quick Answer
Section 32 of the Income Tax Act, 1961 (Depreciation) corresponds to Section 33 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 32
Under the Income Tax Act, 1961, Section 32 governs depreciation. Allows depreciation on tangible (buildings, machinery) and intangible (know-how, patents) assets based on Block of Assets concept.
From 1st April 2026, the same subject sits at Section 33 of the Income-tax Act, 2025 — retained and renumbered as Section 33 of the Income-tax Act, 2025. Retained. However, goodwill of a business or profession is completely and explicitly removed from the block of depreciable intangible assets.
For Section 32, the practical impact is rated Critical. Governs massive capital expenditure write-offs.
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 is Section 32 of the Income Tax Act, 1961 about?
Section 32 of the Income Tax Act, 1961 covers depreciation. Allows depreciation on tangible (buildings, machinery) and intangible (know-how, patents) assets based on Block of Assets concept.
Which section replaces Section 32 in the Income-tax Act, 2025?
Section 32 of the Income Tax Act, 1961 maps to Section 33 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. However, goodwill of a business or profession is completely and explicitly removed from the block of depreciable intangible assets.
What is the impact of the change to Section 32 under the new tax code?
The transition impact for Section 32 is rated Critical. Governs massive capital expenditure write-offs.
What should I watch out for when Section 32 moves to the 2025 code?
Additional depreciation for new manufacturing units restricted and phased out to align with corporate tax rate cuts. These points are specific to Section 32 (Depreciation).
Disclaimer: This mapping of Section 32 (Depreciation) to Section 33 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 32 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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