50% Depreciation on commercial vehicle for FY2009-10

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Praveen (Querist)
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21 June 2010 I Have purchased a commercial vehicle for business purpose in Feb 2009 and claimed 50% Depreciation as per notification. Now for FY 2009-10 can i claim 50% depreciation as per notification or not.
My question is also whether the notification is applicable only for one year or for continuous period untill the asset is held for use in business.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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21 June 2010 Commercial Vehicles acquired during Jan'09 - Sep'09 forms a separate bolck of Plant & Machinery eligible for depreciation @ 50%. Enhanced depreciation is available for later years also.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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21 June 2010
Income-tax (Eleventh Amendment) Rules, 2009 – Amendment in New Appendix 1

NOTIFICATION NO. 37/2009 [F.No.142/01/2009-TPL], DATED 21-4-2009

In exercise of the powers conferred by section 295 of the Income -tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules 1962. Namely:–

1. (1) These rules may be called the Income-tax (Eleventh Amendment) Rules, 2009.

(2) They shall come into force with effect from the 1st day of April, 2010.

2. In the Income-tax Rules, 1962, in the Table to New Appendix 1, in Part-A relating TANGIBLE ASSETS, under the heading III, MACHINERY AND PLANT, in sub-item (via) of item (3), for the words and figures “1st day of April, 2009”, the words and figures “1st day of October, 2009” shall be substituted at both the places.

So rate of Depreciation for financial year 2009-100 on commercial Vehicles will be as follows:-

Product Depreciation rate

(if purchased between 01.04.2009 to 30.09.2009)
Depreciation rate

(if purchased after

30th September 2009)

Commercial Vehicle 50% 50% of 30%

Yes, you can claim depreciation 50% as per notification for current year as well as future year also.

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