The value of all those assets to which one rate of depreciation is applicable is known as the Block of assets. Section 2(11) of Income Tax defines 'Block of Assets' as a 'group of assets' in respect of which the same percentage of depreciation is to be applied, i. e. proper calculation of Depreciation based on WDV of each block of assets has been prescribed for determining exact tax liability on capital gains/ business profits. Depreciation is calculated on the WDV of a Block of assets. Block of assets is a group of assets falling within a class of assets comprising of:Tangible assets, being building, machinery, plant or furniture,Intangible assets, being know-how, patents, copyrights, trade-marks, licenses, franchises, or any other business or commercial rights of similar natureThe block of assets is classified further depending on the similar use, life of the asset, and nature of the asset.