Ver very urgent- additional depriciation

As per the section 32(1)(iia), Additional depreciation @ 20% can be claimed if following conditions are fulfilled- (1) New machinery or plant (not second hand), (2) Acquired after 31.3.05, (3) assessed should be engaged in business of manufacture or production, (4) such plant Should not be installed in office premises/residence, (5) Additional dep Not applicable for office appliances or road transport vehicles. Apart from above prints, the section has not specified any restriction on amount for which this additional depreciation can be claimed. So the company can claim add dep. on entire amount of Rs.1.5crores.

Also note that if these plants n machinery was used for less than 180days in the year of acquisition then additional dep can be claimed only @ 10% and not @ 20%. Hope all this should settle your query. Any further query is still welcome. Kind Regards.

Dear Ashish : I would like to raise one point that section 32 (1)(iia) contains the following phrase  "has  acquired and installed after the 31st day of March, 2005",

So both acquisition and installation should be necessary for claiming of additional depreciation?

Yes Vineet, you are right. Thanks for pointing out my mistake. It should be both acquired and installed (i.e put to use) in order to be eligible to claim add. dep. Thanks a lot Vineet.