In the case of assets used for generation and distribution of power, the Income-tax Act prescribe which of the following method of depreciation.?
In the case of assets used for generation and distribution of power, the Income-tax Act prescribe which of the following method of depreciation.?
The correct option is A Straight line method
Straight
line method.
Under Section
32(1)(i) in case of an undertaking engaged in generation and
distribution of power, the depreciation will be allowed on actual cost (i.e.,
on straight line method) at the rates provided in Appendix IA read with Rule
5(IA) in respect of assets acquired on or after 1st April 1997. However,
1. Such
undertaking however has the option to claim depreciation on written down value method at the rates provided in new Appendix I.
2. Such an option
is to be exercised before the due date for furnishing the return of income tax u/s
139(1) for the year in which it begins to generate power.
Straight line method.
Under Section 32(1)(i) in case of an undertaking engaged in generation and distribution of power, the depreciation will be allowed on actual cost (i.e., on straight line method) at the rates provided in Appendix IA read with Rule 5(IA) in respect of assets acquired on or after 1st April 1997. However,
1. Such undertaking however has the option to claim depreciation on written down value method at the rates provided in new Appendix I.
2. Such an option is to be exercised before the due date for furnishing the return of income tax u/s 139(1) for the year in which it begins to generate power.
