A manufacturer who has exercised the option of shifting out of the default tax regime instals new plant and machinery (used for more than 180 days). The rate of additional depreciation under section 32(1)(iia) is:

1. Section 32(1)(iia) grants additional depreciation of 20% of the actual cost of new plant and machinery to assessees engaged in manufacture or production, or in generation, transmission or distribution of power. 2. If the asset is put to use for less than 180 days in the year of acquisition, only 10% is allowed that year and the balance 10% in the immediately succeeding year. 3. The allowance is available only on exercising the option of shifting out of the default regime under section 115BAC(1A). _Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 23_