Higher depreciation on commercial vehicle

[Kishor Deshpande]

During the financial year 2008-09 ( A Y 2009-10) a motor car ( i.e. Light Motor Vehicle) purhcased between the period 1.1.2009 to 31.3.2009. There was a provision of depreciation to be charged @ 50%. Now, what should be the rate of depreciation for the financial year 2009-2010 ( i.e. A Y 2010-10) for WDV as on 1.4.2009 for the same LMV (motor car)? Whether it is 50% or 15% ?

AI Summary

Depreciation Rate for Light Motor Vehicles Remains 50% for 2009-10 Under Income Tax Rules, 1962 A user inquired about the applicable depreciation rate for a light motor vehicle purchased between January 1, 2009, and March 31, 2009, which was eligible for a 50% depreciation rate during the financial year 2008-09. The question was whether the rate should remain 50% or be reduced to 15% for the financial year 2009-10. A respondent clarified that the depreciation rate would continue to be 50% for subsequent years, referencing the relevant entry in the Income Tax Rules, 1962.