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What is Depreciation in Accounting Under Law

As per Lawkidunya Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset’s value has been used up. For example, companies can take a tax deduction for the cost of the asset, meaning it reduces taxable income.

Section 22 ITO Depreciation in Income Tax Ordinance 2001

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