Additional depriciation

Additional depreciation can be claimed on the new plant and machinery in the year of acquisition @ 20 % (or 10 % if used less then 180 days ) on original cost.

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 )

• *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.

• Rate of additional depreciation

Additional depreciation is available only in the year of acquisition and installation of plant or machinery and not afterwards

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Hi Imtiyaz. Additional depr. can be claimed ONLY in the Year of put to use.

That too on Original cost.

However, ONLY HALF depr can be claimed if Asset is put to use for less than 180 days.

whether additional depreciation can be claimed if the plant & machinery is given on lease

No as it is to be used in the business of manufacture or production of any article or thing

 It can only be claimed ONCE and in the year of acquisition and installation..I guess most of the questions raised here are well answered in Manmohan sirs notes

Yes, only in the year of acquisition..as per the section...acquistion AND installation both must be done in the same year.

 additional dep can be only claimed in 1st yr i.e. yr of put to use.

subsequent yr not available because in subsequent yr,s the p/m does not remain "new"

the word "new" has been specifically used in the provision relating to additional dep.

new asset means which hv not been subject to depriciation...effectively add. dep available in 1st yr of put 2 use

it appears that every one has been prejudiced in reply. they have presumed that since additional depreciation is allowed, it has to be only in the first year. if a proper analysis of the section is done there does not appear to hold any such presumption or prejudice. in the provision prior to 01.04.2005, the words "in any previous year in which such undertaking begins to manufacture" or "during any previous year in which it achieves the substantial expansion", but there is no such conditions attached in the substituted section. in fact a new class of asset has been created that is "any new machinery or plant which has been acquired and installed after the 31st day of March, 2005". as a new class has been created, there do not appear to be any bar in claiming additional depreciation in the subsequent years too.