- Applicability: It is applicable to assesses engaged in the business of manufacture / production of any article or a thing.
- Eligible Asset: Any new machinery or plant acquired and installed after 31-03-2005.
- Ineligible Assets:
- Ships and Aircrafts
- Any machinery or plant which, before installation by the assessee, was used either within or outside India by any other person, or
- Any machinery or plant installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house, or
- Any office appliance or road transport vehicle, or
- Any machinery or plant, the whole cost of which is allowed as a deduction in computing the Income chargeable under the head “Profits and Gains of Business or Profession” of any one previous year.
- Rate of Additional depreciation: 20% of the actual cost of machinery or plant.
- Additional Depreciation: Assets newly acquired and put to use in the same previous year for less than 180 days, the additional depreciation shall be provided at 50% of normal rate applicable
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