Additional Depreciation

[Income Tax]

Q. What is additional depreciation? Who is allowed to claim it? What is the rate of additional depreciation?

[Income Tax]

In the case of any new plant or machinery which has been acquired and installed after 31.03.05, by an assessee engaged in the manufacture or production of any article or thing. A further sum equal to 20% of the actual cost of such machinery or plant shall be allowed as deduction u/s 32(1)(ii).

Exceptions: Additional Depreciation will not be available on the following plant & machinery
1) Any plant &machinery the whole of the actual cost of which is allowed as deduction( by way of depreciation or otherwise) in computing income under the head PGBP.
2) Ships & Aircrafts
3) Plant & machinery which was used by any other person before its installation.
4) Any plant & machinery installed in office premises or residential accommodation ( including guest house).
5) Any office appliances or transport vehicle.