Depreciation Expense Section 22
Previously, under section 22 of the Ordinance, tax payer was allowed to claim full year depreciation in the year in which asset is acquired and no depreciation was allowed in the year of disposal.
The Finance Act 2020 has restricted the claim of depreciation to 50% of full year depreciation in the year of acquisition.
Similarly, in relation to disposal of an asset after the 1st day of July, 2020, depreciation would be available to the extent of 50% of full year deprecation in the year of disposal.
