Machinery Purchased and scrapped in the same year

This discussion explores the tax depreciation treatment for machinery purchased and subsequently scrapped within the same financial year. The consensus is that depreciation is permissible, even if the asset was used for less than 180 days. The calculation typically involves applying half the standard depreciation rate. Additional depreciation may also be applicable for manufacturing or production activities, provided the Written Down Value (WDV) and block of assets are maintained.