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BlOCK OF ASSETS-2(11)

Block Of Assets 2(11)

Meaning

Block of Assets is used for charging same rate of depreciation to a particular class of assets having  same or similar characteristics. Income Tax Act has prescribed different rates for charging depreciation for different blocks of assets such as buildings,intangible assets,etc…Depreciation is charged mainly for the purpose of computing Capital Gain

Definition

“block of assets” means a group of assets falling within a class of assets comprising—

(a)  tangible assets, being buildings, machinery, plant or furniture;

(b)  intangible assets, being know-how, patents, copyrights, trade-marks, licences, franchises or any other business or commercial rights of similar nature,

in respect of which the same percentage of depreciation is prescribed ;]

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