## Block of Assets Method & Additional Depreciation
### Block of Assets [Sec. 2(11), Rule 5(1)]
For assessees other than power undertakings, depreciation is computed at a prescribed % on the WDV of a block of assets.
A block of assets is a group of assets within a class comprising:
- Buildings, or
- Furniture, or
- Plant & Machinery, or
- Intangibles — know-how, patents, copyrights, trademarks, licences, franchises or other business/commercial rights (excluding goodwill)
…AND carrying the same rate of depreciation.
> Example: Cars, air conditioners and industrial machines are all 'plant & machinery' at 15% → grouped into a single P&M 15% block.
### Additional Depreciation [Section 32(1)(iia)]
> Not available to an assessee opting for the default tax regime u/s 115BAC — available only if the assessee chooses the optional (old) regime.
Eligible assessee: Engaged in manufacturing, production, or power generation.
- Printing / printing-and-publishing amounts to manufacture or production.
- In the power sector, additional depreciation is allowed only if the block-of-assets (WDV) method is chosen.
Eligible assets: New machinery or plant acquired and installed. Does NOT include:
- Second-hand machinery (whether purchased in India or outside)
- Machinery installed in office/residential premises, and office appliances
- Ships, aircraft, and road transport vehicles
- Any machinery for which 100% deduction or 100% depreciation is otherwise allowed
Rate:
- 20% of the actual cost of new P&M acquired and installed during the year.
- If put to use for < 180 days, only 10% (half) is allowed this year and the remaining 10% is allowed in the next year.