Additional depreciation

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ATUL BAJAJ (Querist)
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14 October 2010 is it is mandatory to claim additional depreciation???????? if it is not claimed in the eligible year then what will be the WDV for the next year to claim depreciation for the same asset

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 October 2010 Additional Depreciation is available only in the year in which the new plant & machinery is first put to use. As such it is not available in the subsequent year. If not claimed the WDV will be as per the amount of depreciation claimed i.e. without considering the additional depreciation.

ATUL BAJAJ

ATUL BAJAJ (Querist)
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14 October 2010 why it is so as we know it is not mandatory to claim depreciation in computation of income but block will be reduced by the depreciation amount for the next year

Guest

Guest (Expert)

14 October 2010 claim of Additional depreciation not mandatory....

if there is no increase in production.....

company is not eligible for addl depn

read the provision carefully......

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 March 2012 Mandatory.
Reason is as follows:-
Explantion 5 says...... "this subsection"....
The subsection referred therein is 32(1).
Since additional depreciation under sub section (iia) falls under subsection (1),explanation 5 squarely applies to (iia) meaning thereby addtional depreciation is mandatory.

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