ISLAMABAD: The Federal Board of Revenue (FBR) has issued a detailed list of particulars required for claiming depreciation deduction during the tax year 2024.
The move is part of the FBR’s efforts to streamline the tax process and ensure that taxpayers provide comprehensive information regarding depreciable assets and intangibles.
The FBR’s initiative is outlined in the recently released updated Income Tax Rules, 2002, specifically tailored for the tax year 2024. According to the FBR, taxpayers are now obligated to furnish a set of particulars when submitting a return of income to claim a depreciation deduction under Section 22, an initial allowance under Section 23, or an amortization deduction under Section 24, in conjunction with the Third Schedule to the Income Tax Ordinance, 2001.
Key particulars required for claiming depreciation deduction include:
1. Description of Assets: Taxpayers must provide a detailed description of each depreciable asset and intangible for which a deduction is being claimed.
2. Part-Use Information: In cases where a depreciable asset or intangible is used only partly in deriving income from business chargeable to tax, taxpayers must specify the extent of such part use.
3. Date of Acquisition: If the depreciable asset or intangible was acquired in the tax year, taxpayers are required to disclose the date of acquisition.
4. Written Down Value: The written down value of each depreciable asset at the beginning of the tax year and the cost of each intangible must be provided.
5. Capital Expenditure: Taxpayers need to furnish the amount of capital expenditure incurred in the tax year on additions, alterations, improvements, or extensions related to any depreciable asset or intangible.
