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Depreciation

Rahul (Chartered Accountnat CS) (1580 Points)

13 October 2011

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?

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12 Replies

sumit jain (.) (844 Points)
Replied 13 October 2011

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)

IPSA ;) ($) (611 Points)
Replied 13 October 2011

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

sumit jain (.) (844 Points)
Replied 13 October 2011

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

valji (Accounts manager-MBA) (2150 Points)
Replied 13 October 2011

agree with mr jain

Rahul (Chartered Accountnat CS) (1580 Points)
Replied 13 October 2011

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?

IPSA ;) ($) (611 Points)
Replied 13 October 2011

i din say second hand...

Z ( ) (2960 Points)
Replied 13 October 2011

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

1 Like

CA.Kandarp (OWNER) (25 Points)
Replied 13 October 2011

agree with the last comment

Swapnil Jain (Finance - FP&A) (564 Points)
Replied 13 October 2011

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

Rahul (Chartered Accountnat CS) (1580 Points)
Replied 13 October 2011

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

nupur (employee) (112 Points)
Replied 13 October 2011

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 .