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It explains section 32, which outlines. This provision, covered under section 32 (1) (iia) of the income tax. Under section 32 (1) (iia), additional depreciation is allowed for new machinery or plant (excluding ships and aircraft) acquired and installed by manufacturing businesses:

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As per section 32 of the income tax act, 1961, depreciation is allowed on tangible assets and intangible assets owned, wholly or partly, by the assesse and used for the. The article discusses the concept of depreciation under the income tax act, 1961, highlighting its dual purpose for accounting and taxation. Additional depreciation is calculated on the actual cost of the plant and machinery, while in the case of block of assets, the depreciation is calculated on the written down value.

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Additional depreciation is governed by section 32 of the income tax act, which outlines the rules and eligibility criteria for claiming depreciation on assets. Additional depreciation under income tax act, 20% of actual cost shall be allowed for any new machinery or plant acquired and installed, used for < 180 days Additional depreciation is an additional depreciation benefit (usually 20% if assets are used more than 180 days, 10% if less than 180 days) given to taxpayers who acquire machinery or plant.

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But in certain cases, the law offers even more—a special deduction called additional depreciation under income tax act. Depreciation under the income tax act refers to the allowance provided to taxpayers for the gradual reduction in value of tangible assets (like machinery, buildings,.

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For more details and authoritative references, refer to the official documentation on Wikipedia.