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Joined March 2019
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/