RSM India

Newsflash Income Tax Rate of depreciation brought down to 40 percent for all assessees

Recently, the CBDT has made changes in the Income Tax Rules to restrict the rate of depreciation maximum up to 40% for block of assets which are currently eligible for depreciation at a higher rate ( 50%, 60%, 80%, 100%).

  • This amendment is applicable from current financial year itself (i.e. FY 2016-17) in case of new manufacturing companies(incorporated on or after 1.3.2016)  which will opt for lower corporate tax rate of 25% under section 115BA of the Income Tax Act, 1961.
  • For all other assessees, the above amendment is applicable from next year (i.e. FY 2017-18).

In this regard, we are pleased to attach our newsflash covering the gist of amendment.

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