Deduction under section 32

deepak kumar srivastava (na) (281 Points)

13 October 2015  

A ltd is a power generation and distribution company. A new distribution lines were laid out in 2011-2012 in an area cost of such distribution lines amounted to 100 Crore.

 

As per the govt. Regulations such company is allowed to recover 30% of the cost from the customers of that area including in electricity bills .

The company recovered the cost as follows:-

 

in 2013-2014 rs 5.00 Crore

in 2014-2015 rs 4.00 Crore.

 

The company claims depreciation on original cost method under section 32(1)(i).

Rate of depreciation  –15%

 

How can you compute depreciation on allowance under section 32(1)(i) for the A.Y. 2016-17