Additional depreciation

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Asawari Malhotra (Querist)

30 June 2013 Additional depreciation allowed to manufacturing companies u/s 32 be claimed only once so if the assessee forgets to claim it in the 1st year of purchase of new machinery..can he claim it once in any of the subsequent previous years ? If yes, under the same section ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

30 June 2013 No this is not a matter of choice.
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Additional Depreciation can be claimed in the very first year when the machine is first put to use. If Machinery is used for less than 180 days then only 50% depreciation will be allowed. The remaining 50% can not be claimed in the next year.
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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

30 June 2013 Additional depreciation is the depreciation which is allowed by Income Tax Act over and above original depreciation of an asset subject to fulfillment of different condition as prescribe under the income tax act. So assessee can claiming total depreciation which is equal to Normal depreciation + additional depreciation =total depreciation

Additional depreciation is allowable only once in a life of an asset in the year of the purchase of such new plant and machinery.

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