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Additional depreciation

CS Moiz Patharia (Secretary) (28 Points)

27 September 2011

Is providing additional depreciation on new plant and machinery compulsarily claimed or is it optional.

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8 Replies

Sravanthi (CA Final ICWA Final & M.B.A) (737 Points)
Replied 27 September 2011

only on certain cases like manufacturing etc..there is a separate provision for this in Income tax act.

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SANYAM ARORA (“It's hard to beat a person who never gives up.”) (20173 Points)
Replied 27 September 2011

only in case of manufacturing ones and when the asset is new.....................!!!1

@ ! @

(Guest)

Yes Its Manadatory for all eligible manufacturing concern as it is proveded u/s 32(1)(ii).........there is no option.............

Pls correct me if i m wrong

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 27 September 2011

Originally posted by : Sravanthi
	only on certain cases like manufacturing etc..there is a separate provision for this in Income tax act.

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 28 September 2011

Additional Depreciation is allowable as per income tax act,to boost manufacture ,to a manufacturing company,for new plant & machinery...

its totally depend on you,to claim or not....if u claim,u benefited...

For detail,refer sec 32(1)(II) of income tax act...

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C.A. Sandeep Wawhal (CA, PGDFM, BCom) (1831 Points)
Replied 28 September 2011

Additional depreciation on Plant & Machinery purchased during the year available only for Manufacturing concern but only for machinery which have purchased after March 2005

(Guest)

Additional depreciation is allowed @ 20% and it is purely optional for the assesse to claim. There are some conditions and limitations to claim this additional depreciation which you can always refer from Income Tax Act, 1961. Section 32(1)(iia) is the relevant section for this.

(Guest)

Originally posted by : Ravi Thapa
	Additional depreciation is allowed @ 20% and it is purely optional for the assesse to claim. There are some conditions and limitations to claim this additional depreciation which you can always refer from Income Tax Act, 1961. Section 32(1)(iia) is the relevant section for this.

Sir

Though it is mentioned in sec 32(1)(iia).........In sec 32(1)(iia) it is mentioned that addtional depreciation shall be allowed as deducation u/s 32(1)(ii)........& it is manadatory to claim deduction under 32(1)(ii)

So I think it will be manadatory pls correct if i m wrong