Additional Dep. (PGBP)

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Additional Depreciation, as per Section 32(1)(iia) of the Income Tax Act, 1961, allows a 20% deduction on plants and machinery used in production. This deduction is a one-time claim, only permitted in the year the assets were acquired, not on an annual basis.

Subhrajit Chakraborty

Subhrajit Chakraborty (Querist)
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13 December 2022 Can an assessee claim Additional Depreciation every year or is it only allowed for one year?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2022 It's allowed for only one year.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2022 As per the Section 32(1) (iia) of the Income Tax Act, 1961 the plants and machinery engaged in the production of a thing are granted a deduction on additional depreciation at the rate of 20% in the year they were purchased

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