Depreciation u/s 32

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Varun Tavaria (Querist)

26 December 2014 If a machinery A is purchased for 200000 on 15.5.2014 and put to use on 31.1.2015 and depreciation is calculated @15%p.a. Does half rule be applicable in this case. If yes, then from which date and why? Assessment year is 2015-16

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 December 2014 If the asset is used for less than 180 days then it will depreciated by half rate.

Rupesh Jain

Rupesh Jain (Expert)

26 December 2014 AS PER INcome tax act deprecation will be 50% of normal rate of depreciation if it use less than 180 days in a year.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)

26 December 2014 As per proviso to section 32(1) if asset which is put to use for less than 180 days the depreciation will be allowed 50 % of normal depreciation.

Further, Additional depreciation under section 32(1(iia) will also reduced by 50 %.

You can also refer the ruling of Bombay High Court in case Dineshchand Gulabchand Agrawal.

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