Question ID :
40875
Sec.115BAA
A company has opted for lower rate of tax under sec.115BAA for FY 2019-20. It is a manufacturing company claiming additional depreciation till FY 2018-19. For FY 2019-20, it has opted sec.115BAA. It is a profit making company and there are no brought forward business loss or brought forward unabsorbed depreciation. During FY 2018-19, there were certain machinery items which were added for less than 180 days on which additional depreciation was claimed only at 10%. The balance 10% can be claimed in FY 2019-20. Since the Company has opted sec.115BAA, it has to forego this additional depreciation in FY 2019-20. As per proviso to sec.115BAA(2), whether the unclaimed additional depreciation of 10% has to be added back to the opening WDV of the block on 1.4.2019? Pls .clarify
Posted by
balasubramanian
on
Oct 21, 2020
Filed Under
DIRECT TAXES
Answer ID :
80808
Yes it has to be added back since the assessee is entitled to claim normal depreciation on that added amount.
Posted by
B.CHACKRAPANI WARRIER on
Nov 11, 2020