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Additional depreciation u/s32

Srinivas Rao (Teacher) (87 Points)

19 November 2011

Opening WDV of Block of P & M 80,000

Addition on 1st July 3,00,000

Sold from opening block for 3,20,000

what is the amount of additional depreciation to be claimed?

Thanks in advance

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3 Replies

Phalgun (Audit Manager) (327 Points)
Replied 19 November 2011

Additional depreciation on P & M can be claimed @ 20% only if the asset is used by the assessee in the manufacture of an article or thing & installed after 31st march 2005. Such asset should be P & M(other than ships & air craft). This is in addition to basic 15% available on P & M.

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CS Alok Mishra (Income Tax Practitioner) (791 Points)
Replied 19 November 2011

Very important thing about Additional Depreciation is ,

1. It should be installed in Factory

2. It should be new.

3. It should be Plant & Machinery ( Other than Ship & Aircraft)

Your solution is as follows:

Opening 80,000

Add Addition 3,00,000

Less Sold 3,20,000

Gross Value 60,000

Less: Deprec. 9,000 ( 60,000*15%)

Less Add Dep. 60,000 (3,00,000*20%)

Net Block Value (9,0000) i.e. (+60,000-9,000-60,000)

Vikas (CA) (1135 Points)
Replied 20 November 2011

friend...i think a part of the new machine purchased would have been sold as the op. bal. machines having wdv of rs.80000 can not practically sold for rs.320000... if yes then the ans above is correct... but i think it would b no...then the no addl.dep. will b claimed the machine sold...n normal dep will b claimed on the wdv...