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CS Executive · Tax Laws and Practice · Profits and Gains from Business and Profession

Which of the following new plant items acquired by a manufacturing company would qualify for additional depreciation under the Income-tax Act, 2025?

A new machine first used by the company and installed in its factory qualifies. Additional depreciation excludes second-hand plant, items installed in office or residential premises, and office appliances or road transport vehicles, so the other options each fail a condition.

  1. AA new machine installed in the company's office premises
  2. BA new road transport vehicle used to deliver goods
  3. CA new machine, first used by the company, installed in its factoryCorrect
  4. DA second-hand machine previously used by another person in India, installed in the factory

Explanation

Additional depreciation requires new machinery or plant that was not used earlier by any other person, not installed in office premises or residential accommodation, and not an office appliance or road transport vehicle. Only a new machine installed in the factory meets all conditions. The second-hand machine fails the not-previously-used condition.

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