additional depreciation query-urgent

Dear Friends

A company purchase a machinery used for manufacturing . Tell me whether increase in installed capacity is neessary for charging additional depreciation or not.

Replies (1)

As per section 32 of the income tax act, additional depreciation to the extent of 20% of the actual cost can be claimed in respect of any plant and machinery purchased on or after 31/3/05, if the assessee is engaged in manufacture/production of any article or thing. There is no requirement of an increase in installed capacity.

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