Additional Depreciation

In the case of any new plant or machinery which has been acquired and installed after 31.03.05, by an assessee engaged in the manufacture or production of any article or thing. A further sum equal to 20% of the actual cost of such machinery or plant shall be allowed as deduction u/s 32(1)(ii).

Exceptions: Additional Depreciation will not be available on the following plant & machinery
1) Any plant &machinery the whole of the actual cost of which is allowed as deduction( by way of depreciation or otherwise) in computing income under the head PGBP.
2) Ships & Aircrafts
3) Plant & machinery which was used by any other person before its installation.
4) Any plant & machinery installed in office premises or residential accommodation ( including guest house).
5) Any office appliances or transport vehicle.