Depreciation for Power Generating Undertakings - Section 32(1)(i)

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..... ritten Down value method on block of assets When a depreciable asset (on which depreciation is claimed on straight line basis) of a power generating unit is sold, discarded, demolished or destroyed in a previous year, then TERMINAL DEPRECIATION (in case of loss) is deductible or BALANCING CHARGE (in case of gain) is taxable. Terminal Depreciation or Balancing Charge is calculated as follows- St .....

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..... the assessee. Balancing Charge u/s 41(2) and capital gain u/s 50A - If the amount calculated under Step II is more than the amount of Step I, then tax treatment of such surplus is as follows: * So much of the surplus which is equal to the amount of depreciation already claimed, is taxable as balancing charge u/s 41(2) as business income. * The remaining surplus (if any) is taxable under the .....

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