Amortization
Definition
The systematic write-off of the cost of an intangible asset (like patents, trademarks, or goodwill) over its useful economic life, analogous to depreciation for tangible assets.
Example
"A patent purchased for ₹5 Lakhs with a 10-year life is amortized at ₹50,000 per year, reducing its carrying value on the Balance Sheet each year."