homevideos Newseconomy NewsGoodwill excluded from definition of intangible assets; Dhruva Advisors’ Ajay Rotti explains impact on cos

Goodwill excluded from definition of intangible assets; Dhruva Advisors’ Ajay Rotti explains impact on cos

The goodwill depreciation is something that is now relieved from the intangible asset as a block by the finance Budget. But what does this mean for the companies with goodwill component on its balancesheet?

By Nisha Poddar  Mar 26, 2021 2:51:55 PM IST (Published)

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Tax outgo by way of depreciation benefit claim that companies can make on the goodwill is a very big point of discussion. The Budget proposal had some changes and the amendments take it wider.
The goodwill depreciation is something that is now relieved from the intangible asset as a block by the finance Budget. But what does this mean for the companies with goodwill component on its balancesheet?
Ajay Rotti, Partner at Dhruva Advisors said, “The amendments that have been brought in is simple. Goodwill as a class of asset has been taken out from intangibles to be eligible for depreciation.”