Amendment of section 32.
13. In section 32 of the Income-tax Act, in sub-section (1), in clause (iia), for the words “or in the business of generation or generation and distribution”, the words “or in the business of generation, transmission or distribution” shall be substituted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 13 of the Bill seeks to amend section 32 of the Income tax Act relating to depreciation.
Under the existing provisions contained in clause (iia) of subsection (1) of section 32, a 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 or in the business of generation or generation and distribution of power, is allowed as deduction as further depreciation in the year of acquisition and instalment.
It is proposed to amend the said clause (iia) so as to provide that the deduction under the said clause shall also be allowed to the business of transmission of power.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to assessment year 2017-2018 and subsequent years.
