Provision - Accelerated depreciation

[ASHISH TIWARI]

Income Tax Act, 1961. provides for the rate of depreciation i.e. 80% on Renewable Energy distribution devices.However the Central Electricity Regulatory Commission tariff determination guidilines provides for the different tariff rates i.e. Rs. 18 -in case assessee avails normal depriciation & Rs. 17 in case assessee avails the accelerated depriciation benefits of Income Tax. My querries are 1) whether there is any other provision under the Income Tax Act which deals with accelerated depriciation? 2)In case the rate is 80% only than what is accelerated depriciation.

AI Summary

Accelerated Depreciation for Renewable Energy Devices: Understanding 80% Rate Under Income Tax Act Section 32 and Rule 5(1A). A discussion on a forum addresses the topic of accelerated depreciation under the Income Tax Act, 1961, specifically for renewable energy distribution devices, which allows an 80% depreciation rate. The query raises questions about other provisions for accelerated depreciation and the meaning of the 80% rate. The response clarifies that the 80% rate is an incentive or accelerated rate applicable to businesses using prescribed assets. For power generating or distribution companies, there are options to adopt different depreciation rates as per Appendix 1 or 1A of the IT Rules, with references to Section 32 and Rule 5(1A).