Depreciation - section 32 - initial depreciation allowance

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..... 1961. providing for initial depreciation allowance in respect of machinery or plant installed in certain selected industries after 31st May, 1974. The initial depreciation allowance will be available in respect of the following categories of machinery and plant:- (i) New ships and aircraft acquired by a taxpayer engaged in the business of operation of ships or aircraft. It should be noted that n .....

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..... e purpose of business of manufacture or production of any other article or things. In other words, new machinery or plant installed industrial undertakings will qualify for initial depreciation allowance irrespective of whether or not the new machinery or plant is used for the manufacture or production of articles or things specified in the new Ninth Schedule. An industrial undertaking, will be re .....

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..... r in which the asset is sold or demolished or in the year in which the normal depreciation tends to exceed 80 per cent of the cost. In other words, the aggregate of the initial depreciation and normal depreciation including multiple shift, over the years will not exceed the actual cost of the ship, aircraft, machinery or plant. Initial depreciation allowance will also be taken into account in calc .....

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