Depreciation for Power Generating Undertakings - (New) Section 33(2) / (Old) Section 32(1)(i)

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....• Generation of power or • Generation and distribution of power • Deduction in respect of Depreciation shall be is based on actual cost. [ Section 33(2) ] A deduction in respect of depreciation of • Depreciation is allowed on: • Tangible assets: buildings, machinery, plant, furniture • Intangible assets: patents, t....

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....ual cost of the asset Rule 25(5) & (6): Option to Once switch method • The undertaking specified in section 33(2) may, at its option, be allowed depreciation to under rule 25(1) read with Appendix I (i.e. WDV Method) instead of the depreciation specified in Appendix II, • Such option is exercised on or before the due date for furnishi....

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....xable. Terminal Depreciation or Balancing Charge is calculated as follows- Step I Find out the written down value of the depreciable asset on the first day of the previous year in which such asset is sold, discarded, demolished or destroyed. Step II Find out the sale consideration. It is the actual money and it does not include any other thing or benefit which can be converted in te....