Depreciation as per the Income Tax Act is a decrease in the value of the asset over its useful life. It can be claimed as an expense and reduced from the taxable income of the taxpayer. A taxpayer can claim it on both tangible assets and intangible assets as per the prescribed rates in the Income Tax Act.
Steps to claim depreciation on Quicko:
- Navigate to Income > Business & Profession
- Add your Business- Regular or Presumptive
- Go to Asset, scroll down and click on Add Fixed Assets
- Enter Asset description, select asset type, enter book value, and choose a depreciation rate
- Next, the depreciated amount will be shown as a Non-speculative loss
Note: Only claim depreciation on an asset if it's associated to your business.