Depreciation

Tax queries 1008 views 12 replies

In case of additional depreciation to industrial undrtakings, if asset was acquired on 1st may 2010 and put to use in next year say 1st may 2011. Will additional depr be available?

Replies (12)

Additional depreciation is available in the first year in which the asset is put to use..

(I am assuming that all other conditions are satisfied)

no... its available on new assets only..i.e. in d 1st year...

Originally posted by : (: ..ISP**

no... its available on new assets only..i.e. in d 1st year...

The phrase new asset here means that the asset should not be Second hand asset (A few exceptions)

Additional depreciation is available in the year in which the new (not second hand) asset is installed or put to use.. There is no condition that the asset should be installed in the same year in which it is purchased , to claim additional depreciation

agree with mr jain

Thanx. So hear in my case i will get 10 % additioonal depr on NEW asset for PY 2010-11 and 0% add depr in PY 2011-12. Am i correct?

i din say second hand...

Additional depriciation (sec 32(1)(iia)) is to be allowed ONLY in the FIRST year in which the asset is installed and put to use and when asset is put to use for less than 180 days then depriciation amount will be 50% of additional depriciation (which i think is 20% of actual value of plant and machinery)

10% additional dep if used less than 180 days in first year

if not used then 0 % and further additional depriciation can not be claimed

 

sec 32(1)(iia) conditions www.indiataxes.com/Information/depreciation.htm

agree with the last comment

Originally posted by : Z
Additional depriciation (sec 32(1)(iia)) is to be allowed ONLY in the FIRST year in which the asset is installed and put to use and when asset is put to use for less than 180 days then depriciation amount will be 50% of additional depriciation (which i think is 20% of actual value of plant and machinery)
10% additional dep if used less than 180 days in first year
if not used then 0 % and further additional depriciation can not be claimed
 
sec 32(1)(iia) conditions www.indiataxes.com/Information/depreciation.htm

agreed

So in my cas 0% is add. depr ???????????

Additional depreciation can be claimed in the year when the asset is put to use  and not the year of purchase , rest all other conditions is satisfied to claim additional deprecation . 

nope.. additional depreciation will not be avialable as the asset was not at all used.. Depreciation will not be if the asset is not used at all.. 


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