Depreciation rules permit splitting initial-year deduction for short first-year use and enhance benefit for new plant in notified backward areas.

Amendments to section 32 permit that where an asset under clause (iia) or its first proviso is used for business for less than one hundred and eighty days in the previous year and the deduction is restricted to fifty per cent of the prescribed clause (iia) amount, the remaining fifty per cent of that amount is allowable in the immediately succeeding previous year.

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