Tax Book 2023

Assets and Depreciation Chapter- 10

Section Rule

Topic covered

(For CAF- 6 and ICMAP Students)

PART – I (FOR CAF- 6 & ICMAP STUDENTS)

22 12 & 224 Depreciable asset

23 12 & 224 Initial allowance

23A 12 & 224 First year allowance

23B Accelerated depreciation to alternate energy projects [Part-II of Third Schedule]

24 Intangibles

25 Pre-commencement expenditure

Disposal of assets

Assets of leasing companies

75 Disposal & acquisition of assets

75A Purchase of assets through banking channel

76 Cost of assets under various situations

77 Consideration received under various situations

PART – II (FOR CA MOD F & ICMAP STUDENTS)

78 Non-arm's length transactions

79 Non-recognition rules

MCQ’s with solutions

ICMAP & CA Mod C past papers theoretical questions^

PART - I (For CAF- 6 and ICMAP Students)

DEPRECIATION

1. Depreciation

Where a person is using depreciable asset to derive income from business, then he shall be allowed

to deduct depreciation of the depreciable asset from his income from business.

2. Depreciable asset [U/s 22(15)]

Any tangible moveable or immovable property (other than unimproved land) or structural

improvement to immoveable property, owned by a person that;

 has normal useful life of more than one year;

 is likely to lose value as a result of normal wear and tear or obsolescence; and

 is used by the person for his business purposes (wholly or partly)

but shall not include any tangible movable property, immovable property, or structural improvement to

immovable property in relation to which a deduction has been allowed under another section of this

Ordinance for the entire cost of the property or improvement in the tax year in which the property is

acquired or improvement made by the person;

10 Assets and depreciation

Chapter