Additional Depreciation on Motor vehicles

Additional Depreciation on Motor vehicles

 If motor vehicles are purchased on or after 23^rd of August 2019, additional depreciation is provided for Income Tax purposes as per Notification No. 69/2019-Income Tax dated the 20th September, 2019.

Conditions:

1. Acquired on or after 23^rd of August 2019 but on or before 31^st March 2020
2. Asset is put to use in the current financial year

The new depreciation rates are:

1. Motor cars – 30%
2. Motor cars used in a business of running them on hire – 45%
3. Motor buses and motor lorries – 45%

The additional depreciation to provided to businesses to encourage purchase of vehicles before change to new emission norms on 1^st April 2020.

(The article is not intended as professional advice and is subject to the Disclaimer)