Computation of depreciation admissible under section 32
written down value as on 1/4/08 – 75,00,000 @ 15% 1125000
new plant and machinery installed
Cost of new plant and machinery 10,00,000
Add: interest for the period from 1/8/08 to 1/11/08
(i.e. for 3 months) being interest for the period
before the asset is first put to use = 10,00,000×10%×3/12 25000
Actual cost of plant and machinery 10,25000
Depreciation on actual cost of new plant and machinery
Normal depreciation = 10,25,000×15%×50% 76875
Additional depreciation = 10,25,000×20%×50% 102500
179375
Admissible depreciation for the year 1304375
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