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Additional depreciation under Section 32(1)(iia) is:
A15% of WDV
B20% of actual cost in year of installation
C25% over 3 years (per relevant Section)
D10% of cost
Answer & Solution
Correct answer: B. 20% of actual cost in year of installation
1. Section 32(1)(iia) provides additional depreciation at 20% of actual cost for new plant and machinery.
2. Assessee must be in manufacturing/production or power gen/transmission/distribution.
3. If put to use less than 180 days, only 10% in year of installation; balance in next year.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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