Determination of depreciation.
38. (1) The amount of depreciation of business capital assets referred to in section 37 shall be the aggregate of the following, namely:
(a) such percentage of the adjusted value of any block of assets as specified in the Fifteenth Schedule, in respect of all the business capital assets forming part of the relevant block of assets specified therein; and
(b) "nil", in respect of any other business capital asset not forming part of any block of assets specified in the Fifteenth Schedule.
(2) The depreciation allowance on assets referred to in section 37 shall, notwithstanding the fact that all business capital assets in any block of assets have ceased to exist by reason of being demolished, destroyed, discarded or transferred, be allowed to the person in respect of the block of assets, if the adjusted value of the block of assets is greater than zero.
(3) The deduction under this section in respect of an asset shall be restricted to fifty per cent. of the sum referred to in sub-section (1) if
(a) the asset is acquired by the person during the financial year; and
(b) is used for the purposes of business for a period of less than one hundred and eighty days in the relevant financial year.
(4) The depreciation in respect of any business capital asset, notwithstanding anything contained in any other provision of this Code, shall not be allowed if,
(a) the asset does not form part of any block of assets specified in the Fifteenth Schedule; or
(b) the expenditure incurred for acquiring the asset has been allowed as a deduction under any provision of this Code.
