Depreciation u/s 32

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Varun Tavaria (Querist)
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26 December 2014 If a machinery A is purchased for 200000 on 15.5.2014 and put to use on 31.1.2015 and depreciation is calculated @15%p.a. Does half rule be applicable in this case. If yes, then from which date and why? Assessment year is 2015-16

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2014 If the asset is used for less than 180 days then it will depreciated by half rate.

Rupesh Jain

Rupesh Jain (Expert)
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26 December 2014 AS PER INcome tax act deprecation will be 50% of normal rate of depreciation if it use less than 180 days in a year.

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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26 December 2014 As per proviso to section 32(1) if asset which is put to use for less than 180 days the depreciation will be allowed 50 % of normal depreciation.

Further, Additional depreciation under section 32(1(iia) will also reduced by 50 %.

You can also refer the ruling of Bombay High Court in case Dineshchand Gulabchand Agrawal.