Depreciation under income tax act 1961

100% Depreciation will be allowed in FY 2017-18.

In my openion only 50% (F.Y 2017-18) of total depreciation will be allowed and balance 50% (F.Y. 2018-19) will be allowed in next year

as prerequisite for claiming depreciation is asset should be put to use if claiming for first time

Originally posted by : Rishi Mehta
	100% Depreciation will be allowed in FY 2017-18.

Dear Rishi Ji,

Will u please elaborate?

Originally posted by : Rakesh Bandal
	In my openion only 50% (F.Y 2017-18) of total depreciation will be allowed and balance 50% (F.Y. 2018-19) will be allowed in next year as prerequisite for claiming depreciation is asset should be put to use if claiming for first time

Dear Rakesh ji,

I am also of the same view.

50% Depreciation is allowed only if the Year of acquisition and installation of Machinery is the same.
100% of normal Depreciation will be allowed if year of acquisition and installation is different.



In your case year of acquisition is 2016-17 and year of installation of Machinery is 2017-18. Therefore, 100% of Depreciation will be allowed.

Reason of restriction of 50% of normal Depreciation: If asset is put to use for less than 180 days in the year of acquisition.

In your case condition of put to use of 180 dasy will not be applicable, since year of acquisition and year of put to use is different.

Mr. Bijay Shrestha,
Facts of your case:
1. Year of acquisition and year of put to use is difgerent in your case.
Answer to your query:
1. Depreciation u/s 32(1)(ii) is allowed @ 15% (assumed) Fully.
Reason: Proviso to section 32(1)(ii) is applicable in the year of acquisition only. Since in your case year of put to use and year of acquisition is not the same, depreciation shall be allowed fully.

Note: Same provison shall be applicable in case of additional depreciation u/s 32(1)(iia) (if applicable).

Hope this will meet your requirement.

Regards.