Depreciation on solar projects

[Dhirendra Srivastava]

In case of installing solar projects,government is purchasing power from producer at higher rate Rs 18 per KWH. Can somebody advise me on rate of depreciation under IT applicable. DS

[Surender Gupta]

For certain specified solar projection the rate of depreciation is 80%. You need to see entry no. xii1 under the block Plant and Machinery of the Annexure 1 of the Income Tax Rules, 1962.

AI Summary

Depreciation for solar power assets: qualifying solar plant and machinery attracts 80% depreciation under income tax rules.
Specified solar power installations are classified within the Plant and Machinery block for depreciation under the Income Tax Rules, and the Annexure entry assigns an eighty percent depreciation rate to qualifying solar plant and machinery.