Amendment of section 32.
11. In section 32 of the Income-tax Act, in sub-section (1), in Explanation 3, for the words 'the expressions "assets" and "block of assets"', the words 'the expression "assets"' shall be substituted with effect from the 1st day of April, 2010.
Notes on Clauses:
Clause 11 of the Bill seeks to amend section 32 of the Incometax Act, relating to depreciation.
It is proposed to amend Explanation 3 to sub-section (1) of section 32 of the Income-tax Act which defines "assets" and "block of assets" for the purpose of depreciation under sub-section (1) of section 32.
It is proposed to omit reference to "block of assets" from Explanation 3 to sub-section (1) of section 32. Consequent to proposed amendments, the expression "block of assets" shall have the same meaning as assigned to it in clause (11) of section 2 of the said Act.
This amendment will take effect from the 1st April, 2010 and will, accordingly, apply in relation to the assessment year 2010-2011 and subsequent years.
