Is providing additional depreciation on new plant and machinery compulsarily claimed or is it optional.
CS Moiz Patharia (Secretary) (28 Points)
27 September 2011Is providing additional depreciation on new plant and machinery compulsarily claimed or is it optional.
Sravanthi
(CA Final ICWA Final & M.B.A)
(737 Points)
Replied 27 September 2011
only on certain cases like manufacturing etc..there is a separate provision for this in Income tax act.
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20168 Points)
Replied 27 September 2011
only in case of manufacturing ones and when the asset is new.....................!!!1
@ ! @
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 27 September 2011
| Originally posted by : Sravanthi | ||
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only on certain cases like manufacturing etc..there is a separate provision for this in Income tax act. |
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CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 28 September 2011
Additional Depreciation is allowable as per income tax act,to boost manufacture ,to a manufacturing company,for new plant & machinery...
its totally depend on you,to claim or not....if u claim,u benefited...
For detail,refer sec 32(1)(II) of income tax act...
C.A. Sandeep Wawhal
(Chartered Accountant PGDFM BCom.)
(1823 Points)
Replied 28 September 2011
Additional depreciation on Plant & Machinery purchased during the year available only for Manufacturing concern but only for machinery which have purchased after March 2005
| Originally posted by : Ravi Thapa | ||
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Additional depreciation is allowed @ 20% and it is purely optional for the assesse to claim. There are some conditions and limitations to claim this additional depreciation which you can always refer from Income Tax Act, 1961. Section 32(1)(iia) is the relevant section for this. |
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Sir
Though it is mentioned in sec 32(1)(iia).........In sec 32(1)(iia) it is mentioned that addtional depreciation shall be allowed as deducation u/s 32(1)(ii)........& it is manadatory to claim deduction under 32(1)(ii)
So I think it will be manadatory pls correct if i m wrong
CAclubindia
