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% ?

[Surender Gupta]

IT will remain to be 50% for the subsequent years. See entry no. (via) within the block plant and machinery in the Annexure 1 of the Income Tax Rules, 1962

AI Summary

Higher depreciation for light motor vehicles continues to apply to written down value in subsequent years under block rules. The higher depreciation rate allowed to a light motor vehicle purchased in the specified period continues to apply to the written down value in subsequent years because the vehicle forms part of the block 'plant and machinery' and is governed by the specific entry in the income-tax rules granting higher depreciation to that block.