Income Tax Act, 2025
Section 4: Subs. by Act 10 of 2000, s. 19, for “book value of the assets” (w.e.f. 12000).
4. Subs. by Act 10 of 2000, s. 19, for “book value of the assets” (w.e.f. 12000).
5. Subs. by s. 19, ibid., for “value of the assets as appearing in the books of account” (w.e.f. 12000).
6. The words “as appearing in the books of account” omitted by Act 32 of 2003, s. 20 (w.e.f. 12004).
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1[Explanation 2C.—Where in any previous year, any block of assets is transferred by a private
company or unlisted public company to a limited liability partnership and the conditions specified in the
proviso to clause (xiiib) of section 47 are satisfied, then, notwithstanding anything contained in
clause (1), the actual cost of the block of assets in the case of the limited liability partnership shall be the
written down value of the block of assets as in the case of the said company on the date of conversion of
the company into the limited liability partnership.]
2* * * * *
Explanation 3.—Any allowance in respect of any depreciation carried forward under sub-section (2)
of section 32 shall be deemed to be depreciation “actually allowed”.
3[Explanation 4.—For the purposes of this clause, the expressions “moneys payable” and “sold” shall
have the same meanings as in the Explanation below sub-section (4) of section 41.]
4[Explanation 5.—Where in a previous year, any asset forming part of a block of assets is transferred
by a recognised stock exchange in India to a company under a scheme for corporatisation approved by the
Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board
of India Act, 1992 (15 of 1992), the written down value of the block of assets in the case of such company
shall be the written down value of the transferred assets immediately before such transfer.]
5[Explanation 6.—Where an assessee was not required to compute his total income for the purposes
of this Act for any previous year or years preceding the previous year relevant to the assessment year
under consideration,—
(a) the actual cost of an asset shall be adjusted by the amount attributable to the revaluation of
such asset, if any, in the books of account;
(b) the total amount of depreciation on such asset, provided in the books of account of the
assessee in respect of such previous year or years preceding the previous year relevant to the
assessment year under consideration shall be deemed to be the depreciation actually allowed under
this Act for the purposes of this clause; and
(c) the depreciation actually allowed under clause (b) shall be adjusted by the amount of
depreciation attributable to such revaluation of the asset.]
6[Explanation 7.—For the purposes of this clause, where the income of an assessee is derived, in part
from agriculture and in part from business chargeable to income-tax under the head “Profits and gains of
business or profession”, for computing the written down value of assets acquired before the previous year,
the total amount of depreciation shall be computed as if the entire income is derived from the business of
the assessee under the head “Profits and gains of business or profession” and the depreciation so
computed shall be deemed to be the depreciation actually allowed under this Act.]
of section 47 are satisfied, then, notwithstanding anything contained in
clause
of section 32 shall be deemed to be depreciation “actually allowed”.
3[Explanation 4.—For the purposes of this clause, the expressions “moneys payable” and “sold” shall
have the same meanings as in the Explanation below sub-section
of section 41.]
4[Explanation 5.—Where in a previous year, any asset forming part of a block of assets is transferred
by a recognised stock exchange in India to a company under a scheme for corporatisation approved by the
Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board
of India Act, 1992 (15 of 1992), the written down value of the block of assets in the case of such company
shall be the written down value of the transferred assets immediately before such transfer.]
5[Explanation 6.—Where an assessee was not required to compute his total income for the purposes
of this Act for any previous year or years preceding the previous year relevant to the assessment year
under consideration,—
the actual cost of an asset shall be adjusted by the amount attributable to the revaluation of
such asset, if any, in the books of account;
the total amount of depreciation on such asset, provided in the books of account of the
assessee in respect of such previous year or years preceding the previous year relevant to the
assessment year under consideration shall be deemed to be the depreciation actually allowed under
this Act for the purposes of this clause; and
the depreciation actually allowed under clause
shall be adjusted by the amount of
depreciation attributable to such revaluation of the asset.]
6[Explanation 7.—For the purposes of this clause, where the income of an assessee is derived, in part
from agriculture and in part from business chargeable to income-tax under the head “Profits and gains of
business or profession”, for computing the written down value of assets acquired before the previous year,
the total amount of depreciation shall be computed as if the entire income is derived from the business of
the assessee under the head “Profits and gains of business or profession” and the depreciation so
computed shall be deemed to be the depreciation actually allowed under this Act.]