AIBE Prep › Papers › AIBE XVI — October 2021 › Q.64
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Q.64
Taxation Law Medium Act + Section Given
Bare Act Income Tax Act, 1961 · Section 32(1)(iia)

Rate of additional Depreciation will be under section 32- Indian Income Tax Act-

A 10 %
✓ 20 % Answer
C 15 %
D 30 %
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Explanation & Strategy

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Additional depreciation under Section 32(1)(iia) of the Income Tax Act allows manufacturing companies to claim 20% additional depreciation on new plant and machinery (over and above normal depreciation). This incentivizes capital investment in manufacturing.

  1. 1 Pick up IT Act.
  2. 2 Go to Section 32(1)(iia).
  3. 3 Read: additional depreciation = 20% of actual cost of new machinery.
At a Glance
Subject Taxation Law
Difficulty Medium
Act Income Tax Act, 1961
Section Section 32(1)(iia)
Answer (B) Act + Section Given
Paper AIBE XVI — October 2021
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📖 Open Book — Reading Mode Income Tax Act, 1961