·Conditions for claiming Additional depreciation over & above Normal depreciation:

Condition

Description

I

It is allowable to all assesses engaged in the manufacture/ production of any article/ item/ thing.

II

New Plant & Machinery should be acquired & installed after 31st March’ 2005:

·      Additional depreciation is not allowable in respect of Buildings & Furniture or Old Plant & Machinery.

·      The condition of Acquisition & Installation of Plant & Machinery should be satisfied simultaneously, on failure of which additional depreciation cannot be claimed on same.

III

Additional Depreciation claim is available only in case of Eligible  Plant & Machinery, wherein all Plant & Machineries are eligible except the following:

·      Ships & Aircrafts; or

·      Any machinery/ plant which is and Old/ Second hand.

·      Any machinery/ plant installed in any office/ residential accommodation/ guest house accommodation.

·      Any machinery/ plant whose total actual cost is allowed as a deduction in computing business income in any if one previous years.

IV

The rules of 180 days or above for calculating normal depreciation are applicable in case of calculation of additional depreciation.