Depreciation

byPaytm Editorial TeamLast Updated: December 29, 2025

Meaning & Definition

Depreciation is the reduction in the value of an asset over time due to usage, wear and tear, or age. It is commonly used in accounting and taxation.

Key Points

  • Applies to fixed assets
  • Reduces asset value yearly
  • Helps in tax calculation
  • Non-cash expense

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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