Solar Panel Depreciation Rate As Per Income Tax Act

Depreciation under companies act 2013.

Solar panel depreciation rate as per income tax act.

Know how patents copyrights trademarks licences franchises or any other business or commercial rights of similar nature for financial year 2002 03 to 2019 20 and onwards. Part a tangible assets. Solar pumps based on solar thermal and solar photovoltaic conversion 80 k solar photovoltaic modules and panels for water pumping and other. Pipe type and concentrating solar collectors ii flat plate solar collectors iii solar cookers.

A list of commonly used depreciation rates is given in a. 1 schedule ii 2 see section 123 useful lives to compute depreciation. Flat plate solar collectors b concentrating and pipe type solar collectors c. Also as per section 32 1 ii a of income tax ac 1961 an additional depreciation of 20 of actual cost can be claimed if new plant and machinery is installed for purpose of manufacturing.

Hence one could claim 100 depreciation for a solar power project if the asset is in use for more than 180 days of the fiscal year. Depreciation rates as per the income tax act. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost less its residual value. Rates of depreciation as per income tax act water pollution control equipment being 100 air pollution control equipment being 100 new commercial vehicle which is acquired on or after the.

Depreciation rates as per income tax act for the financial years 2015 16 2016 17 are given below. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.