Additional Depreciation can be claimed for,New Plant and Machinery (other than Ships and Aircraft), acquired and installed after 31.03.2005 by the assessee, engaged in the business of manufacture or production of any article or thing, or in the business of generation, transmission or distribution of power.
Additional deduction of 20% of the actual cost of the asset can be claimed as deduction.
Where an assessee, sets up an,
for manufacture or production of any article or thing, on or after the 1st day of April, 2015, in any backward area notified by the Central Government in this behalf,
and acquires and installs any new machinery or plant (other than ships and aircraft),
for the purposes of the said undertaking or enterprise,
during the period from 1 April, 2015 to 1 April, 2020 in the said backward area,
then, they can claim additional depreciation at the rate of 35% of the actual cost of the asset.
Provided further that no deduction shall be allowed in respect of—
From Assessment Year 2002-2003, depreciation is mandatory in the computation of the income under the head 'Profits and Gains from Business or Profession'.
Where an asset acquired by the assessee during the previous year is put to use for a period less than 180 days in that previous year, then the depreciation (including additional depreciation thereof) shall be restricted to 50% of the normal depreciation.
Such restriction is not applicable for assessment year 1999-2000, in respect of commercial vehicles acquired on or after 01.10.1998 but before 01.04.1999 and put to use before 01.04.1999.
Depreciation is not available in respect of the following assets: -
A foreign motor car acquired after 28.02.1975 but before 01.04.2001, unless it is used:
Any machinery or plant if the actual cost thereof is allowed as a deduction in one or more years under an agreement entered into by the Central Government under section 42.
The aggregate amount of depreciation claimed by: -
shall not exceed the depreciation allowable, computed as if the succession or amalgamation or demerger has not taken place.
The depreciation so determined shall be apportioned between them, in the ratio of the number of days for which they used the assets.
Used for the business or profession includes the asset which is ready for use. Ready to use asset is eligible for depreciation under section 32.
Where the assets are not used exclusively for the purpose of business or profession then the fair proportionate part of such assets used for the purpose of business or profession shall be allowed as depreciation.
The introduction of block of assets concept does not waive the responsibility of compliance with section 38.
Even, in such cases, the assets have to be classified as
A suitable disallowance is required to be made in this regard.
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