Home > Income Tax Act 2025 > Section-41Last Updated: Sep 24th 2025
Section-41 provides for written down value of depreciable asset and, inter alia, provides certain definitions such as actual cost, written down value, speculative transactions, etc. Learn to understand the section-41 as it is, it's help and useful links to follow.
Here onwards, "Act" refers to "Income Tax Act 2025"
[(A-D) + B-C]-E, where
A = the written down value of the block of assets in the immediately preceding tax year;
B = actual cost of any asset falling within that block, acquired during the tax year;
C = moneys payable together with scrap value, if any, in respect of any asset falling within the block, which is sold, transferred, demolished, destroyed or discarded during the tax year, where “C” shall not exceed (A-D)+B;
D = depreciation actually allowed in respect of block of assets in relation to the said immediately preceding tax year;
E = in the case of a slump sale, the actual cost of the asset falling within that block as reduced by—
then the actual cost of the block of assets, irrespective of anything contained in section 39, in the hands of transferee company or amalgamated company, as the case may be, shall be the same as written down value of the block of assets as in the case of the transferor company or the amalgamating company in the immediately preceding tax year as reduced by depreciation actually allowed in respect of that block of asset in relation to that tax year.
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.