Depreciaton under Income Tax Act

Additional Depreciation as per Section 32(2)(iia) is provided one time on the actual cost of the asset and not WDV @ 20%.

Yes Mr. Shudhanshu is Correct

SOrry Mr Subhnasu Question asked is that  if we have not claimed add dep then for next year cost of assets will be after add dep means in books it will be assumed that we have claimed add dep like ordinarly dep 

Originally posted by : CA,CS MANOJ KEDIA
	SOrry Mr Subhnasu Question asked is that  if we have not claimed add dep then for next year cost of assets will be after add dep means in books it will be assumed that we have claimed add dep like ordinarly dep

 According to me additional depreciation should not be deducted from Actual cost or WDV as the case may be. It is because additional depreciation is above 100% value of the asset. So it should not be considered as normal depreciation and should not be reduced from WDV.

Originally posted by : CA,CS MANOJ KEDIA
	SOrry Mr Subhnasu Question asked is that  if we have not claimed add dep then for next year cost of assets will be after add dep means in books it will be assumed that we have claimed add dep like ordinarly dep

 Correct..!!!!.Since as per the Proviso to sec 32..Depreciation is to be deemed as provided in the books even if the same has not been claimed by the assessee.

However..the issue is... if the Proviso applies in case of Additional Depreciation as well..!!!!

Originally posted by : Shudhanshu Agrawal
	Originally posted by : CA,CS MANOJ KEDIA SOrry Mr Subhnasu Question asked is that  if we have not claimed add dep then for next year cost of assets will be after add dep means in books it will be assumed that we have claimed add dep like ordinarly dep   According to me additional depreciation should not be deducted from Actual cost or WDV as the case may be. It is because additional depreciation is above 100% value of the asset. So it should not be considered as normal depreciation and should not be reduced from WDV.

 I would like to correct myself. As per Section 43(6)(b) WDV means the actual cost to the assessee less all depreaciation actually allowed to him under Income Tax Act, 1961.

As in this all depreciation is mentioned so the WDV should be reduced by the additional depreciation amount also.

ADDITIONAL DEPRECIATION CAN BE CLAIMED IF THE ASSESSE IS INVOLVED IN THE BUSINESS OF PRODUCTION AND MANUFACTURING OF ANY ARTICLE OR GOODS  OTHER THEN THOSE SPECIFIED UNDER SCHEDULE 11 AND IT CAN ONLY BE CLAIMED IF A NEW PLANT AND MACHINERY IS PURCHASED  AFTER 31/03/2005.

AN ADDITIONAL DEPRECAITION WOULD BE ALLOWED @ 20% ON THE ACTUAL COST OF THE PLANT AND MACHINERY AND @ 10% IF THE ASSET IS PUT TO USE FOR LESS THEN 180 DAYS(IN  THE YEAR OF PURCHASE)

you can not claimed add. dep in next year and add. dep can not claimed on wdv add. dep claimed on actual