16 December 2011
In case of any new machinery or plant (excluding ships and aircrafts) acquired and installed after March 31, 2005 by an assessee engaged in the business of manufacture or production of any article or thing additional depreciation of 20% of actual cost shall be allowed.
However no such additional deduction will be allowed in respect of —
1) Machinery or plant used by any other person in India or outside India before its installation.
2) Machinery or plant installed in any office premises or any residential accommodation, including a guest house.
3) Any machinery or plant, the whole of actual cost of which is allowed as deduction in computing income chargeable under the head profit and gain of business or profession of any one previous year.
4) In respect of Machinery or Plant acquired between 1-4-2002 and 31-3-2005, additional depreciation of 15% was available. However, such additional depreciation was restricted to cases where such addition resulted into increase in the installed capacity by not less than 10% (25% up to A.Y. 2004-05).
5) Any office appliances or road transport vehicles.
The rules of 180 days or above for calculating normal depreciation are applicable in case of calculation of additional depreciation.
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