Claim Depreciation on Fixed Assets

Claim Depreciation on Fixed Assets

Claiming depreciation allows businesses to reduce their taxable income by accounting for the gradual reduction in value of fixed assets over time due to wear and tear or obsolescence.

Why Claim Depreciation?

Depreciation is a non-cash expense that helps:

  • Lower taxable profits
  • Reflect the true value of your assets over time
  • Comply with accounting and tax regulations

Steps to Claim Depreciation

  1. While adding your Business Income, you'll be prompted to enter Assets & Liabilities
  2. Click on the Assets & Liabilities tab
  3. Under the Fixed Assets section, click Add
  4. Fill in the relevant details:
    • Asset Name
    • Purchase Date
    • Cost of Asset
    • Type of Asset (for applicable depreciation rate)

Once the asset is added, depreciation will be auto-calculated based on the applicable rate as per Income Tax rules.

What Happens Next?

  • Depreciation will reflect in your Profit & Loss (P&L) Statement
  • Your Balance Sheet will auto-update to show the depreciated value of the asset
  • Taxable business income will adjust accordingly

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