Definition of Depreciation

Depreciation refers to the reduction in value of a tangible asset due to its wear and tear or obsolescence over time. It is non cash expense that reduces the value of a physical asset.

 

Author: Vikas Yadav

Vikas Yadav founded MonetarySection.com in 2014 and is responsible for everything published on it. He holds an MBA from NCU (formerly ITM), Gurugram, and writes about accounting, payroll and personal finance for Indian readers. Facts and figures are checked against official sources such as the Income Tax Department, RBI and IRDAI.

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