additional depreciation

dear shini

in the case of any new machinery or plant (other than ships and aircraft), which has been acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of manufacture or production of any article or thing, a further sum equal to twenty per cent of the actual cost of such machinery or plant shall be allowed as deduction.

the word used is acquired and installed. u can claim depreciation in  next year according to the section.

Dear Shini,

Additional Depreciation is available only in the year in which the new plant & machinery is first put to use.So you can calim 20% depreciation in the next financial year.

 

Regards,

Fatema.

when an newly purchased machinery is put to use for the first time the assessee is entitled to an addittional depreciation of 20%  on year when its put to use, irrespective of the year of purchase.

hi tarun, yes the word used is acquired and installed but it is nowhere written in the section that the m/c should be acquired and installed in the same F.Y. The sec. says "acquired & installed after the 31st day of march 2005". a m/c purchased in 2007-2008 but put to use in 2008-2009 can be elligible for additional dep. as well??

sorry it was by mistake submitted.i read the lines of section in other manner.thanks shini.original post is modified by me