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Depreciation solar power plant

25769 views 18 replies
my client had installed solar power plant at his factory
what is rate of depreciation for computation of income & 50% clause would apply as installation after 30 September
Replies (18)

Governments facilitated tax planning here

Let’s say a commercial or industrial user, Example Pvt. Ltd., falls under an income tax bracket of 30%. Now lets say this user builds a general asset that is valued at Rs. 1 Crore in a given financial year, with an expected asset life of 20 yrs. Under normal circumstances, the user will be able to claim an annual depreciation of 5% of Rs. 1.0 Crore (considering linear depreciation, 100%/20yr = 5%/yr). for purpose of income tax.

This implies that the user will be able to claim tax benefit of 30% of 5% of Rs. 1.0 Crore per year = Rs. 1.5 Lakh per year for next 20 years.

However, when the investment is made in a Solar Plant, the user is allowed to depreciate the asset at 40%, thereby allowing the user to completely depreciate the asset within three years term, and saving a tax of Rs. 12 Lakh, Rs. 12 Lakh and Rs. 6 Lakh in the first, second and third year of operation respectively.

https://www.solarmaxx.co.in/accelerated-depreciation-tax-benefits-with-solar-explained/

Depreciation on solar power plant is 40% and additional depreciation will be 20% for additional purchase and 50% of depreciation will be applicable if purchase is after September

Can’t agree less about 180 days policy

Why???

It means, new purchase depreciation after half year policy will be followed.

40% is the rate of depreciation, if the same is used less than or equal to180 days then the rate of depreciation is 20%

I already read that from you online resources 

What do you mean?

WHAT DO YOU WANT TO KNOW? DO YOU READ AS, INDAS AT HOME ONCE IN A WHILE OR JUST SIT ON THE  CHAIR THINKING THAT YOUR A GAJATTED OFFICER THINKING THAT YOU KNOW EVERYTHING? CAN YOU UNDERSTAND ENGLISH?

YOU KNOW I AM PLANNING TO JOIN A COMPANY AFTER LOCKDOWN AND I AM AFRAID OF BUNCH OF IRRITATING, UNEDUCATED, GRADED UP THIRD CLASS CA'S. THE FUNNY PART IS, WHAT MAKES A NITWIT A CA? HE IS GIVEN THAT CADRE BY ALCOHOLIC GOVERNMENTS. WHAT MAKES A CA THINK THAT HIS CA IS BIGGER THAN MY MSC?????? EVERYONE CAN SPREAD THIS RUMOUR TO ALL THE CA'S WORKING IN INDIAN CORPORATES THAT I AM PLANNING LOOK FOR A JOB, AND I TOLD THEM THAT "SHUT YOUR MOUTH AND MIND YOUR OWN BUSINESS" 

THIS OVER ACTION AND SHOW OFF OF CA'S IS MOSTLY FROM PUNJABIS, BRAHMINS ETC FROM NORTH INDIA. IT IS TIME, YOU PEOPLE PACK YOUR BAGS AND LEAVE SOUTH INDIA AND FOREIGN COUNTRIES. 

https://www.teachoo.com/215/65/Concept-of-180-Days/category/Depreciation-Computation-as-per-Income-Tax/

Still don't understand what you want to say, I had given my answer what I have read , if that is wrong then tell. why you write too much nonsense?

Once in a while, I think I am a superman whiteout underwear and get angry on others for a change. 


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