Aggregate depreciation cap limits combined claims after succession or reorganisation, apportioned between transferor and transferee by days used.

The amendment caps the aggregate depreciation deduction for specified tangible and intangible assets where assets pass by succession, amalgamation or demerger at the amount computed as if the reorganisation had not occurred, using prescribed rates, and mandates that this capped deduction be apportioned between the transferor and transferee entities in the ratio of the number of days each entity used the assets.

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