Monday, 2 January 2017

Depreciation Rate change under Income Tax For section 115BA entities

Depreciation Rate change under Income Tax

For section 115BA entities


By the ref. of Notification No. 103/2016 where there is change in depreciation rate
For the entities under the section 115BA of Income Tax

 (1) These rules may be called the Income-tax (29th Amendment) Rules, 2016.

(2) In the Income-tax Rules, 1962 (here after referred to as the principal rules),-

(a) In rule 5, after sub-rule (1), the following proviso shall be inserted with effect from 1st day of April, 2016, namely:-

“Provided that in case of a domestic company which has exercised option under sub-section (4) of section 115BA, the allowance under clause (ii) of sub-section (1) of section 32 in respect of depreciation of any block of assets entitled to more than forty percent shall be restricted to forty percent on the written down value of such block of assets.”

(b) In the New Appendix I, in the Table, in the second column, for the figures “‘50’, ‘60’, ‘80’, ‘100’ ”, wherever they occur, the figure “40” shall be substituted with effect from the 1st day of April, 2017.



Read Also:-  Section 115BA

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