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Depreciation Allowance u/s 32(1)

09 December 2020

Asset was acquired on 01/03/2019 i.e. in P.Y. 2018-19 amounting to ₹ 1,00,000/-. Such asset was "Put To Use" on 15/10/2019 i.e. in P.Y. 2019-20. Depreciation Rate is 15% and also eligible for Additional Depreciation u/s 32(1)(iia). So, what would be the Depreciation Allowance for the P.Y. 2018-19 & 2019-20 ?

Thank You.

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2 Replies

rama krishnan (12234 Points)
Replied 09 December 2020

In my opinion, for 18-19, you can't claim any depreciation since the same was not put to use. for 19-20, you can claim 17.5% depreciation (7.5% regular depreciation and 10% additional depreciation (since asset was put to use less than 182 days)). however let's wait for experts opinion

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Ghanshyam Patel (21 Points)
Replied 09 December 2020

Dear Rama Krishnan,

In my opinion as per Second Proviso to Section 32(1), it is mentioned that there will be deduction @ 50% if :-
(a) The Asset is acquired during the PY
AND
(b) The Asset is put to use less than 180 days in "THAT PY".

So I guess ..
(i) In PY 2018-19 there will be no deduction of depreciation as asset is not put to use.
(ii) In PY 2019-20 there will be FULL deduction of depreciation allowance because BOTH the above conditions are NOT satisfied.

So I was having a doubt that is this interpretation correct or not.

Thank You.

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