additional depreciation

This query is : Resolved

purva.mirji (Querist)
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03 November 2009 following is a sum from income tax reference book...
wdv of plant and machinery Rs 2500000
additions during the year (put to use for less than 180 days) Rs 400000
sale of plant and machinery Rs 2870000
rate of depreciation 30%
The concern is a manufacturing concern.
hence it can claim additional depreciation....
according to provisions of it act addl depreciation can be claimed on ACTUAL COST.

opening wdv 2500000
additions ( used <180 days) 400000
--------
2900000
less sale consideration 2870000
-------
30000
normal depreciation
30000* 30%/2 4500
now i want to ask whether addl depreciation is calculated on Rs 400000 or Rs 30000 @ 20%/2

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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04 November 2009 You can claim add. dep. on balance wdv i.e 30000/-.

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
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04 November 2009 as Per the IT Act you can claim additional depreciation on Rs.400000/= not on Rs.30000/=

This type of query is also given in the Book of VK Singhania also.

Pls refer the same.

CA Deepak S

CA Deepak S (Expert)
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04 November 2009 As per sec 32 the enhanced depreciation is calculated @ 20%(10% if less than 180 days) of the ACTUAL COST of asset. Therefore in my opinion you can claim additional depreciation on Rs.4,00,000/-

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