Additional depreciation

Depratiation as per I.T. Act is @ 15% on Plant & Machinery and If such Plant & Machinery Purchase After 6 months then depratiation should be calculated @ 7.5%

Provision of Additional Depreciation is applicable only for Manufacturing Company.

Mr. sandeep  agree with you.

agree with sandeep

Originally posted by : dushyant
	suppose i have purchased a plant & machinery for100000. now how will i compute depreciation? what will be the amount of total depreciation???

Normal depreciation @ 15% = 15000

+ addl depreciation @ 20% = 20000

Total                                      = 35000

If asset has been put to use for less than 180 days,

Normal depreciation  = 100000*15%*6/12 = 7500

+ Addl Depreciation = 100000*20%*6/12 = 10000

Total                                                         = 17500

Addl depreciation is only available wrt new P&M other than ships and aircraft,

only to P&M used in manufacturing business.

agree with all.........