Special Rates of Depriciation

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Gaurav Pradhan (Querist)
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26 August 2010 Dear Expert,

If a new commercial vehicle is purchased after october 2009 would the special rates @ 50% aply to the the vehicle;

keeping in mind the fact that the rule says " new commercial vehicle which is aquired on or after jan 1, 2009 but before oct 1, 2009 & is put to use before october 1, 2009 for the purpose of business or profession ".

If no then at what rate should it be applied and in the next year what would be the depriciation rates for :

1. asstes purchased before oct 1
2. assets purchased after oct 1

Thanks & regards,
Gaurav Pradhan

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 August 2010 https://www.caclubindia.com/forum/depreciation-on-commercial-vehicle-27687.asp

http://stpam.org/str/special-depreciation-commercial-vehicles

http://www.taxguru.in/income-tax/commercial-vehicle-acquired-bw-01042009-to-31032009-will-be-eligible-to-depreciation-50.html

Please above links for details..

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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26 August 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 then Depreciation rate is 50%

If purchased after 30th September 2009 then dep rate is 50% of 30%

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