income tax

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Querist : Anonymous

Querist : Anonymous (Querist)

23 January 2011 was the depreciation @ 50% allowable on plant & machineries purchased after 31-03-2004 but before 31=03-2007 unde tufs scheme

Manoj Sachdeva

Manoj Sachdeva (Expert)
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23 January 2011 I am giving the excerpts of the Budget of 2005-06 which resolves the query.

New Delhi, the November the 1st , 2007.
vide ntotification of Ministry of Textiles No.6/4/2007-CTI the TUF scheme extended till 31.03.2007 and the Depreciation @50% also aloowed

Depreciation

Extend the rate of depreciation to all Textile Machinery and Machinery purchased upto 31-3-2007 under TUFS

Currently, a depreciation at 50% is applicable on Plant and Machinery used in weaving, processing and garmenting sectors of textile industry, purchased under Technology Upgradation Fund Scheme (TUFS) on or after 1-4-2001 but put to use before 1-4-2004.

Since TUFS has since been extended up to 31-3-2007, it is suggested that the accelerated depreciation may also be extended to machines purchased up to the date.

It is also suggested that the rate of depreciation be made applicable to all Plant and Machinery purchased under TUFS, instead of restricting it to weaving, processing and garmenting sectors to facilitate modernization and expansion so as to enable the units to cater to the expanding and exacting requirements of the domestic and international markets.

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Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2011 the relevant notification of Income tax for claiming depreciation at 50% on Machineries purchased under TUF scheme upto 31-03-2007 is desired.

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