Under section 33 of the Income-tax Act, 2025, the rate of additional depreciation on new machinery or…

Section 33(8) and (9) of the Income-tax Act, 2025 allow additional depreciation on new machinery or plant (subject to exclusions such as ships, aircraft, second-hand machinery, office appliances, road transport vehicles and machinery installed in office or residential premises) acquired and installed by an assessee engaged in manufacture or production of any article or thing, or in generation, transmission or distribution of power. The rate is 20% of the actual cost in the tax year in which the asset is acquired and put to use. Only where it is put to use for less than 180 days is 10% allowed in that year and the balance 10% in the next year, so 10% is wrong here, and 15% and 30% are not rates provided by the section. Additional depreciation is not available where tax is computed under the new tax regime of section 202 (section 202(2)(a)(vi)). (Formerly s.32(1)(iia) of the 1961 Act.)