14/01/2019

COMPUTATION OF ADDITIONAL DEPRECIATION [Sec. 32(1)(iia)] ( Author - Admin )



COMPUTATION OF ADDITIONAL DEPRECIATI0N[Sec. 32(1)(iia)] :

These provisions are given below :-

CONDITIONS To claim additional depreciation the following conditions should be satisfied -.

1 Manufacture/ production of any article :- The assessee should be engaged in the manufacture or production of any article or thing (may be priority sector item or even non-priority sector item given in the Eleventh Schedule)

2. New plant and machinery installed and acquired after March 31, 2005 :- Additional depreciation is available only respect of new plant and machinery acquired and installed after March 31, 2005. The following points should be noted.

* Additional depreciation is not available in respect of building or furniture even if the other conditions are satisfied. 

* Additional depreciation is not available in respect of old plant and machinery. 

3. Eligible plant and machinery  :- Any new plant and machinery which has been acquired and installed after March 31, 2005 by an assessee is qualified for additional depreciation. However, the following assets are not eligible for additional depreciation ‘ 

a) ships and aircrafts; or 

b) any machinery or plant which, before its installation by the assessee, was used either within or outside India by any other person; or 

c) any machinery or plant which is installed in any office premises or any residential accommodation including accommodation in the nature of a guest house; or 

d) any office appliances or road transport vehicles; or 

e) any machinery or plant, the whole of the actual cost of which is allowed as a deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains business or profession" of any one previous year.

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