Additional depreciation

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Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2015 Dear sir
plz let me know what is the additional deprecation

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

26 April 2015 An assessee, in addition to the claim of the depreciation, is entitled to a claim of depreciation u/s. 32(1)(iia) (‘additional depreciation’), on purchase of new plant and machinery and installation thereof, at the rate of 20% of the actual cost of such plant and machinery that is used by the assessee in his business of manufacture or production of articles or things.

Under the second proviso to section 32(1), the depreciation allowed to an assessee is reduced to 50% of the depreciation otherwise allowable, in cases where the asset is put to use for less than 180 days in a year.

Amendment in Budget 2015:

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. 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.

See more at: https://taxguru.in/income-tax/additional-depreciation-plant-machinery-180-days.html#sthash.vtswuAaF.dpuf

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