14/01/2019

RATE OF ADDITIONAL DEPRECIATION ( Author - Admin )



Additional depreciation is available @ 20 per cent of the actual cost of new plant and machinery acquired and installed after March 31, 2005.1f, however, the asset is put to use for less than 180 days in the year in which it is acquired, the rate of additional depreciation is 10 per cent (the remaining 10 per cent shall be allowed as deduction in the next year)

* Where an assessee incurs any expenditure for acquisition of a depreciable asset in respect of which a payment (or aggregate of payments made to a person in a day), otherwise than by an account payee cheque/ draft or use of electronic clearing system through a bank account, exceeds Rs. 10,000, such payment shall not be eligible for normal/ additional depreciation (applicable from the assessment year 2018-19).

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