Additional depreciation on new machinery and plant depends on business use, asset eligibility, and the period put to use.

Additional depreciation is available for new machinery or plant used in manufacturing, production, or the power sector, subject to conditions that the asset is acquired, installed, and put to use for business, and is not a second-hand asset, office or residential asset, vehicle, ship, aircraft, or an item already fully deducted elsewhere. The rate is 20% if put to use for more than 180 days, and 10% in the year of acquisition plus 10% in the next year if put to use for less than 180 days. For power businesses, the benefit applies only under the WDV method, and a higher 35% rate is available for qualifying investment in notified backward areas.

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