PRESS RELEASE

The benefit of enhanced depreciation on commercial vehicles has been extended up to 30th September 2009. Now, commercial vehicles acquired on or after 1st January 2009 and put to use before the 1st October 2009 will be eligible for depreciation at the rate of 50 percent. The Central Board of Direct Taxes have issued a notification vide S.O. 989(E) dated 21st April 2009 (Notification No.37/2009/F.No.142/01/2009-TPL) to this effect, substituting the words "1st day of April 2009" with the words "1st day of October 2009".

Earlier, the benefit was made available for commercial vehicles acquired on or after 1st January 2009 and put to use before the 1st April 2009 vide a notification dated 19th January 2009.

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Rates of Depreciation (Annexure 1 to the Income Tax Rules, 1962)

Enhanced depreciation for commercial vehicles extended, allowing higher depreciation for qualifying purchases within the revised qualifying period. Vehicles acquired on or after 1 January 2009 and put to use before 1 October 2009 are eligible for enhanced depreciation at the rate of 50 percent; a notification substitutes the earlier cut off date to extend the qualifying period and thereby expands eligibility for the enhanced allowance under the Income Tax Rules.