GlossaryDTWhat is Block of Assets?
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What is Block of Assets?

A block of assets is a group of assets of the same class and depreciation rate, on which income-tax depreciation is computed collectively using the written-down value (WDV) method.

Bare Law Reference: Section 32, Income-tax Act.

Detailed Explanation

How it works

Additions are added to the block and sale proceeds are reduced from it; depreciation is charged on the block's WDV, so individual-asset gain or loss is generally not computed unless the block ceases.

Frequently asked questions

What is a block of assets?

A group of assets with the same class and depreciation rate, depreciated together on WDV under Section 32.

How is depreciation charged?

On the written-down value of the whole block, after adjusting additions and sale proceeds.

This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.

Key Takeaways

  • Assets are grouped into blocks by class and rate.
  • Depreciation is on the block's WDV.
  • Individual gain/loss arises only when a block ends.