Additional depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015 Dear Experts,
We have purchased machinery on 12/12/2015 also it has been put to use from 16/12/2015, however this machinery worth is 238000/- and Rs. 7000 was spend in the installation of this machinery, plzz clarify can be availed additional dep. alongwith the basic dep. If yes how to calculate it.... plz clarify with example.....

Regard
Sohan kumar

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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18 December 2015 You can calculate Depreciation on 245000/- for Income tax you have to calculate Less than 180 Days 50% of 15% you have to calculate depreciation Rs.18375/-

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2015 Sir you have calculate the 15% basic dep. Plz claculate the additional dep. Alongwith the basic dep. As per my above query

Ankur Singhal

Ankur Singhal (Expert)
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18 December 2015 Dear
You can take additional depreciation @20% , but as your usage period is less than 180days you can avail addn depn @ 10% of Rs.245000/- for the PY.

AS per Finance Act 2015
This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years.

To remove the discrimination in the matter of allowing additional depreciation on plant or machinery used for less than 180 days and used for 180 days or more, it is proposed to provide that the balance 50% of the additional depreciation on new plant or machinery acquired and used for less than 180 days which has not been allowed in the year of acquisition and installation of such plant or machinery, shall be allowed in the immediately succeeding previous year.