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Additional depreciation -section 32(i)(iia)

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i) Addn Depreciation is not available on the plant which is eligible for 100% Depreciation claim in the year of its acquisition.

ii) Now in another case u have acquired the plant in Sep10 and used it for less than 180 days, in this case Explanation to Sec 32 is attracted and u can claim only half the rate of normal as well as addn. depreciation. So in this case u will be entitled to claim 7.5% dep at normal rate and 10% addn dep.

U cannot claim the remaining 10% of addn dep in next year

1. Additional Depri can be claimed only by those assessee who are engaged in manufactuirng business.

2.If in the year of prchase itself, if you w-off full value of asset then no further add depri can be claimed.

3.If asset is purchased for more than 180 days then full 20 % can be claimed else 10 % and no c-frwd is allowed for balance 10 %.

Additional depreciation of 20% can be claimed since there is no provision is the act which curtails the availing of enhanced depreciation except for ships and aircrafts. Moreover the rate is to be applied only on the cost and not the (cost less depreciation provided during the year). And hence the question of NIL WDV does not arise.

Regarding your second question, the term 'Put to use' does not necessarily mean that the production should have started. So, even though the asset was actually put to use for commercial production only during the second half, the entire 20% of additional depreciation can be claimed provided the machinery is installed and ready for use before 1st Oct 


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