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CA Ysil Karunai (Querist)
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18 January 2010 Dear Sir
What is the difference between Accelerated Depreciation, Additional Depreciation, Accumulated Depreciation, Unabsorbed Depreciation?

shakuntala chhangani

shakuntala chhangani (Expert)
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18 January 2010 Hi, accelerated depreciation means more depreciation. e.g. under IT Act we get accelerated dep as compared to cos Act. Additional dep is allowed besides regular dep if the assessee is engaged in manufacture or production of articles or things, new plant n machinery is acquired and installed after 31.3.2005 and it should be eligible plant and machinery. the rate of additional dep is 20% p.a. of actual cost(refer Sec. 32). accumulated dep is total dep provided on the asset till date. Unabsorbed dep. is that part of dep. which can not be covered by current year's profit before dep and tax. If u have any further query, revert back to me. Regards, CA Shakuntala Chhangani