17 March 2008
IS additional Depreciation allowable for machinery for AY 2008-2009 ? If yes what is the percentage for additional depreciation for the year ended 31/03/2008.
17 March 2008
As per Sec 32Income tax Act,1956 20% is the rate for calculating additional depriciation. The Plant & Machinery should be purchased after 31.03.2005.This is not applicable to ships & aircraft. This is claimed inaddition to normal depriciation. For example, if normal depriciation is Rs100000 & additional depriciation is Rs.25000 then assessee can claim Rs.125000 as depriciation. If assest is used below 180 days then 10% should be calculated as per act
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