rate of additional depreciation
This query is : Resolved
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
(Expert)
06 October 2009
7.5
CA SANJAY MUKHERJEE
(Expert)
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."
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
(Expert)
06 October 2009
Lets keep this query open for other experts to join.
SHIVRATAN SHARMA
(Expert)
06 October 2009
additional depreciation rate will be 10%if the asset purchased after 30th Sept.
09 October 2009
its not clear since 2 experts said 2 rates. can anyone tell it more clearly
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