Income Tax – Depreciation on Windmills restricted to 15% from 1 April 2012
CBDT has amended the Income Tax Rules to restrict the depreciation allowed on windmills installed after 1 April 2012 to 15%. This was 80% for the windmills installed on or before 31st March 2012.
This has been done by amending clauses (l) and (m) of sub item No. (xiii) of item No. 8 under Heading "III. Machinery and Plant" in Part-A relating to Tangible Assets in the Table in the New Appendix I in the Income Tax Rules, 1962. Very Simple Law!
If you want to find this provision, you have to go to:
1. New Appendix in the Income Tax Rules – there are three old appendices.
2. Part A - Tangible Assets - in this new appendix.
3. Heading III in the Tangible Assets.
4. Item 8 under Heading III - Tangible Assets.
5. Sub item xiii in item 8 above
6. Clauses (l) and (m) in sub item xiii above
CBDT Notification No. 15/2012 [F.No.149/21/2010-SO(TPL)] S.O.694(E), Dated: March 30, 2012