|Originally posted by :D Ð½ ! Ñ σ J
||Yes, Additional depreciation can be claimed in subsequent years too, don't worry..
Dhirakj rectify ur knowledge
See provison relating to additonal depreciation (an extract from my personal income tax notes )
Additional depreciation [Sec. 32(1)(iia)]
Additional depreciation is applicable on all assessee engaged in the business of manufacture or production of any article or thing.
Conditions to be satisfied
1. Assessee must be an industrial undertaking, which manufactures or produces any article or thing.
2. Assessee acquired and installed after 31st March, 2005, a new plant or machinery, other than the following:
- *Ships and air crafts; or
- *Any plant or machinery which was used either within or outside India by any other person before such installation; or
- *Any plant or machinery installed in office premises or any residential accommodation or guest house; or
- *Any office appliances or road transport vehicle; or
- * Any plant or machinery, which is eligible for 100% deduction (whether by way of depreciation or otherwise) in any one previous year.
Please note that : Additional depreciation shall be available only on plant and machinery and not on other asset like furniture, building, etc.
3. Assessee furnishes -
· the details of plant and machinery and increase in installed capacity of production in Form 3AA along with the return of income; and
· the report of a chartered accountant certifying that the deduction has been correctly claimed in accordance with the provisions of this clause.
- Rate of additional depreciation
Rate of additional depreciation is 20% of actual cost of such plant or machinery.
However, if the asset is acquired and put to use for less than 180 days then the rate of additional depreciation will be 10% of actual cost.
additional point to be considered
1. Additional depreciation is available to industrial undertaking.
2. Additional depreciation shall be allowed even if the block has nil or negative value.
3. Additional depreciation is available only in the year of acquisition and installation of plant or machinery and not afterwards.
4. Additional depreciation shall be subtracted while computing the closing written down value of the respective block.
5. Additional depreciation is not available if the new plant or machinery is sold in the year of acquisition.