Amendment of section 32.
07. In section 32 of the Income-tax Act, in sub-section (1), in clause (iia), after the words “any article or thing”, the words “or in the business of generation or generation and distribution of power” shall be inserted with effect from the 1st day of April, 2013.
Notes on Clauses:
Clause 7 of the Bill seeks to amend section 32 of the Income-tax Act relating to depreciation.
The existing provisions contained in clause (iia) of sub-section (1) of the aforesaid section 32, a further sum equal to twenty per cent. of the actual cost of new machinery or plant (other than ships and aircraft) acquired and installed after the 31st day of March, 2005 by an assessee engaged in the business of manufacture or production of any article or thing, is allowed as deduction as further depreciation.
It is proposed to amend aforesaid clause so as to allow deduction of a further sum equal to twenty per cent. of actual cost of any new machinery or plant (other than ships and aircraft) acquired and installed after 31st day of March, 2012, as further depreciation to an assessee engaged in the business of generation or generation and distribution of power.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years.
