Question

I need explanation for the illustration 1......fast....

Answer 1

I explain depreciation provision in a simple words

as per Income Tax Act depreciation is applied on the put to use basis .

if the assets put to use more than 180 days then the depreciation rate is actual depreciation (i.e plant and machinery it is 15 % ) if the asset is put to use less than 180 this then that depreciation is 50% of actual depreciation rate (I.e 15% * 50% )
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another concept is additional depreciation there are basic conditions to satisfy to apply the additional depreciation the conditions are

**additional depreciation is applicable for the manufacturing companies for the purchase of plant and machinery
** depreciation rate is normally 20% if the asset is put to use less than 180 days then the additional depreciation rate is 10% (ie. 50% * 20% )

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