rate of additional depreciation

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Finalist (Querist)
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06 October 2009 What should be the additional depreciation rate if the asset purchased after 30th sep????????? is it 10 or 20 or any other rate??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 October 2009 7.5

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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06 October 2009 As far I know the rate of additional dep for new P & M is 20% and if put to use for less than 180 days then the rate will be 10 %.

I would request Expert Maheshwari to confirm the same.

https://www.incometaxindia.gov.in/archive/ExplanatoryCircularFinanceAct2005-Compiled-Recast(2).doc

The excerpts in page 9 of the circular given below.

"3.6

In order to encourage investment, the Finance Act, 2005 has amended section 32 to increase the rate of additional depreciation to twenty per cent on new machinery and plant other than ships and aircraft, acquired and installed after the 31st day of March, 2005, and dispensed with the condition of additional depreciation to be allowed to a new industrial undertaking and the condition of expansion in installed capacity."

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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06 October 2009 Lets keep this query open for other experts to join.

SHIVRATAN SHARMA

SHIVRATAN SHARMA (Expert)
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06 October 2009 additional depreciation rate will be 10%if the asset purchased after 30th Sept.

Finalist

Finalist (Querist)
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09 October 2009 its not clear since 2 experts said 2 rates. can anyone tell it more clearly

Finalist

Finalist (Querist)
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06 January 2010 k