Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Depreciation on actual computation
If you compute your actual professional income, medical equipment is a depreciable asset — you claim depreciation each year (typically 15% on the block, written-down-value method), with certain life-saving equipment eligible for a higher rate. This reduces taxable income over the asset’s life.
Under presumptive, it's built in
If you use 44ADA, you don’t separately claim depreciation — the 50% deduction is deemed to already include all expenses and depreciation. The written-down value is still notionally reduced, which matters if you later sell the equipment or move off presumptive. Confirm the applicable depreciation rate for your equipment.
A worked example
Example: a radiologist buys a ₹40 lakh machine. On actual computation she claims ₹6 lakh depreciation in year one (15%), reducing her tax — so heavy-equipment practices often prefer actual over presumptive. A consultant with a laptop and little equipment loses nothing by using 44ADA. The equipment cost is what tilts the choice. Our team can model depreciation versus presumptive for you.