Equipment Purchase Timing: September 30 Depreciation Deadline Guide
Buy cameras, laptops, equipment before September 30 to claim DOUBLE depreciation in Year 1. Save ₹50,000-2,00,000 with proper timing
TL;DR - Critical September 30 Deadline
- Buy before Sept 30 = claim 100% of annual depreciation in Year 1
- Buy after Sept 30 = claim only 50% depreciation (180-day rule)
- Invoice date matters, not delivery date - get written confirmation
- Computers at 40%, cameras/audio at 15%, furniture at 10% depreciation
- Use our Equipment Depreciation Calculator to plan purchases
When you buy equipment for content creation matters just as much as what you buy. The September 30 deadline is a critical date that can double your tax deductions in Year 1 or cut them in half depending on your purchase timing.
Critical Tax Deadline: September 30
Buy equipment BEFORE September 30 → Claim 100% of year's depreciation
Buy equipment AFTER October 1 → Claim only 50% of year's depreciation
Missing this deadline can cost you ₹32,250 to ₹2,00,000+ in lost tax savings!
Calculate Your Depreciation
The 180-Day Rule Explained
The Income Tax Act has a simple but powerful rule: if you use an asset for more than 180 days in a financial year, you get the full year's depreciation. Use it for less than 180 days, and you get only half.
Purchase: September 25, 2024
Financial Year: April 1, 2024 - March 31, 2025
Days of Use in FY 2024-25:
189 days
Sept 25 to March 31 = More than 180 days
Depreciation Allowed:
100%
Full year's depreciation claimed!
Purchase: October 5, 2024
Financial Year: April 1, 2024 - March 31, 2025
Days of Use in FY 2024-25:
178 days
Oct 5 to March 31 = Less than 180 days
Depreciation Allowed:
50%
Half year's depreciation only!
Invoice Date Matters, Not Delivery Date
Equipment Depreciation Rates by Category
Different types of equipment have different depreciation rates under the Income Tax Act. Here's what applies to content creators:
| Equipment Category | Depreciation Rate | Examples | Block of Assets |
|---|---|---|---|
| Computers & Laptops | 40% per year | MacBook Pro, iMac, Windows laptops, iPads, tablets | Computers |
| Cameras & Lenses | 15% per year | DSLR, mirrorless cameras, cinema cameras, all lenses | Plant & Machinery |
| Audio Equipment | 15% per year | Microphones, audio recorders, mixers, studio monitors | Plant & Machinery |
| Lighting Equipment | 15% per year | LED panels, softboxes, ring lights, studio lights | Plant & Machinery |
| Mobile Phones | 15% per year | iPhone, Android flagship phones used for content | Plant & Machinery |
| Vehicles | 15% per year | Cars, bikes used for shoots and travel | Motor Vehicles |
| Electric Vehicles | 40% per year | Electric cars, e-scooters used for business | Motor Vehicles (EV) |
| Furniture & Fixtures | 10% per year | Studio desks, chairs, shelves, backdrop stands | Furniture |
Written Down Value (WDV) Method
Depreciation is calculated on the Written Down Value, meaning it reduces each year:
- • Year 1: Depreciation on original cost
- • Year 2: Depreciation on (Cost - Year 1 Depreciation)
- • Year 3: Depreciation on (Remaining Value after Year 2)
Real-World Examples: Impact of Purchase Timing
Example 1: YouTuber Equipment Purchase
Purchase: September 25, 2024
Equipment Breakdown:
Year 1 Depreciation (FY 2024-25):
Purchase: October 5, 2024
Equipment Breakdown:
Year 1 Depreciation (FY 2024-25) - Only 50%:
Opportunity Cost of Delay
Lost Depreciation in Year 1: ₹77,500
Lost Tax Savings in Year 1: ₹23,250
Note: You'll claim the remaining depreciation in future years, but losing Year 1 deduction delays tax savings and impacts cash flow.
Example 2: Complete Studio Setup Purchase
Purchase: Before September 30, 2024
Complete Equipment List:
Year 1 Depreciation (100%):
Purchase: After October 1, 2024
Complete Equipment List:
Year 1 Depreciation (50% only):
Massive Opportunity Cost
Lost Year 1 Tax Savings: ₹59,250
For a ₹20 lakh studio setup, buying just 5 days late (after September 30) costs you nearly ₹60,000 in immediate tax benefits. That's enough to buy additional equipment or fund content production!
Strategic Planning: Month-by-Month Equipment Purchase Guide
Best Strategy:
Plan major purchases early in the year
Action Required:
Book immediately, ensure invoice before Sept 30
Consideration:
Defer to April if purchase can wait
Pro Tip: September Rush Strategies
1. Advance Booking: Book equipment in August with September delivery
2. Online Orders: Invoice date = order date on most e-commerce platforms
3. Retail Stores: Visit in person if delivery uncertain, take invoice immediately
4. Email Confirmation: Get written confirmation of invoice date from seller
5. Backup Plan: Have alternate sellers ready if primary source has stock issues
Common Mistakes to Avoid
Relying on Delivery Date
Ordered Sept 28, delivered Oct 5 → Only 50% depreciation!
Waiting for Festive Sales
Diwali discounts in October-November mean 50% depreciation loss
Not Verifying Invoice Date
Some sellers backdate, others don't - always confirm in writing
Missing GST on Invoice
Need proper GST invoice for depreciation claim
Not Maintaining Asset Register
Year-over-year depreciation tracking is mandatory
Cash Payments Without Bills
Can't claim depreciation without proper documentation
Plan Equipment Purchases in Q1
April-June purchases guarantee full depreciation
Request Invoice Date Confirmation
Get email/WhatsApp confirmation of Sept 30 or earlier invoice
Keep Digital + Physical Copies
Invoice, payment proof, warranty card - all important
Pay Digitally for Audit Trail
UPI/Card/Bank transfer creates clear documentation
Maintain Depreciation Schedule
Track WDV year-over-year for accurate tax filing
Claim GST Input Credit Timely
If registered, claim ITC in same month as invoice
Documentation Requirements for Equipment Purchases
Purchase Invoice
- •Seller name and GST number
- •Invoice number and date
- •Equipment description and HSN code
- •Amount with GST breakup
- •Your business name/GST (if applicable)
Payment Proof
- •Bank statement showing transaction
- •UPI/card payment confirmation
- •Cheque copy (if paid by cheque)
- •Payment date matching invoice date period
Delivery & Setup
- •Delivery challan (for reference)
- •Installation receipt (if applicable)
- •Warranty card with serial numbers
- •Product photos in your studio
Asset Register Entry
- •Equipment details and purchase date
- •Original cost and depreciation rate
- •Year-wise depreciation schedule
- •Written Down Value tracking
GST Input Tax Credit (ITC) Timing
If you're GST registered, you can claim input credit on equipment purchases. Important rules:
- • Claim ITC in the same return period as invoice date (not delivery date)
- • September invoice → Claim in September GSTR-3B return
- • Missing the ITC claim window means permanent loss of input credit
- • Equipment must be used for taxable business purposes
Understanding Written Down Value (WDV) Method
Depreciation in India follows the Written Down Value (WDV) method, not straight-line depreciation. This means depreciation reduces each year as the asset value decreases.
| Year | Opening WDV | Depreciation (15%) | Closing WDV | Tax Savings (30%) |
|---|---|---|---|---|
| Year 1 | ₹5,00,000 | ₹75,000 | ₹4,25,000 | ₹22,500 |
| Year 2 | ₹4,25,000 | ₹63,750 | ₹3,61,250 | ₹19,125 |
| Year 3 | ₹3,61,250 | ₹54,188 | ₹3,07,062 | ₹16,256 |
| Year 4 | ₹3,07,062 | ₹46,059 | ₹2,61,003 | ₹13,818 |
| Year 5 | ₹2,61,003 | ₹39,150 | ₹2,21,853 | ₹11,745 |
| Total Depreciation (5 years) | ₹2,78,147 | ₹83,444 | ||
| Year | Opening WDV | Depreciation | Closing WDV | Tax Savings (30%) |
|---|---|---|---|---|
| Year 1 | ₹5,00,000 | ₹37,500 (7.5%) | ₹4,62,500 | ₹11,250 |
| Year 2 | ₹4,62,500 | ₹69,375 | ₹3,93,125 | ₹20,813 |
| Year 3 | ₹3,93,125 | ₹58,969 | ₹3,34,156 | ₹17,691 |
| Year 4 | ₹3,34,156 | ₹50,123 | ₹2,84,033 | ₹15,037 |
| Year 5 | ₹2,84,033 | ₹42,605 | ₹2,41,428 | ₹12,782 |
| Total Depreciation (5 years) | ₹2,58,572 | ₹77,573 | ||
Impact Over 5 Years
Lost Year 1 Tax Savings: ₹11,250
Total Tax Savings Difference (5 years): ₹5,871
While you eventually claim most depreciation, the Year 1 loss impacts immediate cash flow and time value of money.
Special Cases & Scenarios
Depreciation on second-hand equipment follows the same rates as new equipment. The 180-day rule applies equally.
Important Points:
- Purchase price = your cost, not original seller's cost
- Need proper invoice/bill of sale from seller
- If bought from individual, create purchase agreement
- Depreciation starts from date of your purchase
If you lease equipment instead of buying, you can't claim depreciation. But lease/rental payments are 100% deductible as expenses.
Lease vs Buy Decision:
Buy (Own):
- • Claim depreciation over years
- • Asset ownership and resale value
- • Large upfront cost
- • Maintenance responsibility
Lease (Rent):
- • 100% immediate expense deduction
- • No ownership, no resale value
- • Lower upfront cost
- • Lessor handles maintenance
If brands gift you equipment for reviews/sponsorships, special rules apply under Section 194R.
Tax Treatment:
Gifts over ₹20,000:
Brand must deduct 10% TDS on Fair Market Value (FMV)
Your Tax Liability:
Include FMV as income, claim depreciation on FMV
Depreciation Basis:
FMV becomes your "cost" for depreciation calculation
Frequently Asked Questions (FAQs)
You're safe! The invoice date is what matters for depreciation calculation, not the delivery or installation date. Make sure to keep the invoice showing September 29 date and you can claim 100% depreciation.
Yes, from the year you start business. Personal assets converted to business use can be depreciated. The cost you paid becomes the depreciation base. Document the conversion date and maintain records of original purchase.
Claim proportionate depreciation (70%). If equipment is used partly for business, claim depreciation only on business usage percentage. Maintain reasonable justification for the split (time logs, usage patterns).
Correct. If you opt for Section 44ADA (presumptive taxation), you get automatic 50% expense deduction and cannot claim separate depreciation. Only those maintaining regular books of accounts claim equipment depreciation.
Capital gains tax applies. If you sell above Written Down Value (WDV), the profit is taxable. If you sell below WDV, the loss is allowed as deduction. The calculation considers all depreciation claimed over the years.
Yes. All business equipment gets depreciation. Group small accessories together in your asset register. Camera bags/cases fall under "Plant & Machinery" at 15% depreciation rate.
No. Equipment must be "put to use" in business for more than 180 days. If you started business in December, the equipment was only used for 3-4 months in FY 2024-25. You get 50% depreciation in first year.
Yes, full depreciation from year 1. Whether you pay cash or EMI doesn't affect depreciation. Depreciation is on the total cost, not just the amount paid. Separately, interest on business loans is also deductible as expense.
Buy now if you need it. Getting 50% depreciation in Year 1 is better than waiting 6+ months. The equipment helps you earn income immediately. Only delay if purchase is purely tax-driven and equipment isn't urgently needed.
Use Excel or accounting software. Required columns:
- • Asset description and serial number
- • Date of purchase
- • Original cost
- • Depreciation rate
- • Year-wise depreciation claimed
- • Written Down Value each year
Most CAs provide depreciation schedule templates. Update annually during ITR filing.
Ideally no. Equipment should be purchased in your business name (or your personal name if sole proprietor). If equipment is in spouse's name but used in your business, maintain documentation showing transfer/business usage. Better to buy in correct name from start.
Generally no special rule. Income Tax Act doesn't have a de minimis exception for low-value assets. However, in practice, many businesses expense items under ₹5,000-10,000 directly. Discuss with your CA for your specific situation and risk tolerance.
Action Plan: Maximize Your Equipment Tax Savings
Plan Equipment Needs by August
List all equipment you'll need for FY 2024-25. Get quotes, compare prices, shortlist vendors.
Book Before September 25
Don't wait until Sept 30. Give sellers time for processing, especially for bulk/custom orders.
Confirm Invoice Date in Writing
Email/WhatsApp confirmation from seller that invoice will be dated on or before September 30.
Make Digital Payment with Invoice Reference
UPI/bank transfer with invoice number in remarks. Creates clear audit trail.
Store Invoice & Documents Safely
Digital backup (Google Drive/Dropbox) + physical copy. Include warranty cards, payment proof.
Update Asset Register Immediately
Add equipment to depreciation schedule. Calculate Year 1 depreciation for ITR filing.
Claim GST ITC Same Month (If Applicable)
If GST registered, claim input credit in September GSTR-3B return, not later.
Include in ITR Filing Next Year
Depreciation goes in Profit & Loss statement (ITR-3) or depreciation schedule (if applicable).
Conclusion
The September 30 equipment purchase deadline is one of the most important tax planning dates for content creators. Missing this deadline doesn't just delay tax savings—it can cost you ₹30,000 to ₹2,00,000+ in Year 1 deductions depending on your equipment investment.
Smart content creators plan equipment purchases in Q1-Q2 of the financial year (April to September), avoiding the September rush and ensuring maximum tax benefits. If you're planning any equipment purchase this year, make sure your invoice is dated before September 30.
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