Depreciation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 May 2015 I have purchase a machine for my factory on dated 03-02-2015 whose depreciation rate is 15%, what should be depreciation rate as on 31-03-2015. will it be charged at 15% or half i.e. 7.5%. will income tax department will allow the depreciation at 7.5% for just 2 months usage.
reply pls.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 May 2015 As per Income Tax Act 50% of Normal Depreciation Rate can be charged as depreciation i.e., 7.5%.

The asset must have been used in the previous year, on which depreciation is claimable if:

#The asset is used for less than 180 days then 50% of the depreciation is claimable;

# Else if use is 180 days or more then full depreciation claim is allowable.