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Additional Depreciation

Sathyanarayanan A (Others) (35 Points)

25 August 2009

Dear Forum Members,

Is it mandatory to claim additional depreciation under Section 32 of the Income tax act ?

Thanks,

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2 Replies

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 25 August 2009

Mr.Sathyanarayana A

Additional depreciation is not a thrust on the assessee as in the case of deprectio. Depreciation is a thrust on the assessee as per the provisions of Explanation 5 to sub-section (1) of section 32. Additional depreciation is allowable on fulfillment of certain conditions.

Best Wishes

Sathikonda

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Bhaskaran Chackrapani Warrier (Chartered Accountant) (80230 Points)
Replied 19 March 2012

Mandatory.
Reason is as follows:-
Explantion 5 says...... "this subsection"....
The subsection referred therein is 32(1).
Since additional depreciation under sub section (iia) falls under subsection (1),explanation 5 squarely applies to (iia) meaning thereby addtional depreciation is mandatory.