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Additional depreciation -section 32(i)(iia)

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1.Suppose an Assessee Purchases a new plant costing 30000 and put to use immediately in June 2010.

Normal Depreciation for this block is 100%

Should we need to compute Additional Depreciation on this plant say 20%

 

2.When a new plant costing 30000 is acquired in sep 2010 and put to use in Nov 2010 thereby usage is less than 180 days  Normal depreciation is 15%

Should I compute addl depreciation only for 10%

and is it possible for me to claim additional depreciation for next year for another 10%

Please give Your views

Replies (17)

1. NO addl depn(wait for other members comment) bcoz block will become nil after normal depn

2.addl dep 10% in this yr. no claim in next yr

Thank u Mr Roopali Kadam  for the reply

Originally posted by : Roopali Kadam

1. NO addl depn(wait for other members comment) bcoz block will become nil after normal depn

2.addl dep 10% in this yr. no claim in next yr

Agrees with Roopali Kadam

ur  1st case-  Hw it is possible that depri @ 100% yaar .......... pls think on it?

If 100% is to be write off than it ll be consumable goods not a assets for block ok.

 

& in second case additional dep will be allowed for the year @ 20% if it is a manufacturing company alongwith normal dep at applicable rate of the block.........

Originally posted by : Prakash Mali

ur  1st case-  Hw it is possible that depri @ 100% yaar .......... pls think on it?

If 100% is to be write off than it ll be consumable goods not a assets for block ok.

 

& in second case additional dep will be allowed for the year @ 20% if it is a manufacturing company alongwith normal dep at applicable rate of the block.........

180 days rule be followed , in additional depericiation also .

Mr Prakash Mali thanks for reply

in the problem it is given normal depreication is 100% for new plant 

1 ) no you cannot provide additional depreciation

2 ) in second case you can provide additional dep if you are satisfying all the conditions of the said act

1) I think you should claim additional depreciation if there are assets in the block. Because there is nothing mentioned in IT act. 

@ Prakash Sir:     100% depreciation available on Air pollution control equipments; water pollution control equipments;
solid waste control equipments, recycling and resource recovery
systems; (being annual publications) owned by assessees
carrying on a profession or books (may or may not be annual
publications) carrying on business in running lending libraries.

2) Additional depreciation 10% only.       You cannot take balance of 10% next year......

Dear Sivaram I would like to answer your questions as below

With respect to the que 1- You absolutely cannot claim additional depreciation on a plant which is depreciable @ 100% as term 'eligible plant and machinery ' specifically excludes such asset..

it is confirmed...okay..

W.r.t your 2nd que- you can claim depreciation at HALF Rate if asset is put to use for less than 180 days.

Further you cannot carry forward the balance unclaimed 10% to next year...no such condition in act..

Bt please note that assessee must be engaged in manufacture/production of article or a thing can only to claim additonal depreciation....

u can take addittional depreciation @ 10% in the cuurent year. In next year u r not entitled to claim addittional depreciation

Originally posted by : Anvesh Desai

Dear Sivaram I would like to answer your questions as below

With respect to the que 1- You absolutely cannot claim additional depreciation on a plant which is depreciable @ 100% as term 'eligible plant and machinery ' specifically excludes such asset..

it is confirmed...okay..

W.r.t your 2nd que- you can claim depreciation at HALF Rate if asset is put to use for less than 180 days.

Further you cannot carry forward the balance unclaimed 10% to next year...no such condition in act..

Bt please note that assessee must be engaged in manufacture/production of article or a thing can only to claim additonal depreciation....

Agreeee  :)  <am to lazy to type the same>

Originally posted by : Roopali Kadam

1. NO addl depn(wait for other members comment) bcoz block will become nil after normal depn

2.addl dep 10% in this yr. no claim in next yr

AGREED 

no, not at all. Because the asset becomes fully depriciable in one assesment year, on which we can not claim additinal depreciation u/s 32(1)(iia)

 

1. NO addl depn(wait for other members comment) bcoz block will become nil after normal depn

2.addl dep 10% in this yr. no claim in next yr



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