Income-tax (9th Amendment) Rules, 2019 – Additional depreciation on motor cars and motor vehicles shall be allowed in certain conditions- Notification No. 69/2019-Income Tax Dated 20th September, 2019.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 69/2019-Income Tax
New Delhi, the 20th September, 2019
(Income-tax)
G.S.R. 679 (E).—In exercise of the powers conferred by section 32 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules to further amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.- (1) These rules may be called the Income-tax (9th Amendment) Rules, 2019.
(2) They shall be deemed to have come into force with effect from the 23rd day of August, 2019.
2. In the Income-tax Rules, 1962, in the NEW APPENDIX I, in the Table, in PART A relating to TANGIBLE ASSETS, in item III relating to MACHINERY AND PLANT, –
(a) for sub-item (2) and entries relating thereto, the following shall be substituted, namely:-
| Block of Assets | Depreciation allowed as per percentage of written down value |
| 1 | 2 |
| “(2) (i) Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990 except those covered under entry (ii); | 15 |
| (ii) Motor cars, other than those used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020. | 30”; |
(b) in sub-item (3), for paragraph (ii) and entries relating thereto, the following shall be substituted, namely:-
| Block of Assets | Depreciation allowed as per percentage of written down value |
| 1 | 2 |
| “(ii) (a) Motor buses, motor lorries and motor taxis used in a business of running them on hire other than those covered under entry (b). | 30 |
| (b) Motor buses, motor lorries and motor taxis used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020. | 45”. |
[Notification No. 69 /2019/ F.No. 370142/17/2019-TPL]
SAURABH GUPTA, Under Secy. (Tax Policy & Legislation Division)
Explanatory Memorandum: It is certified that no person is being adversely affected by giving retrospective effect to this notification.
Note : The principal rules were published in the Gazette of India vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 662(E) dated the 17th September, 2019.
Is the enhanced rate if depreciation @ 30% is applicable for only for 1st year of purchase or is applicable for the remaining years till the car depreciated?
is this provision applicable for AY 2021-22?
Depn claimed at enhanced rate for AY2020-21 on new car purchased, will the enhanced rate continue to be applied in the subsequent years
additional depreciation on commercial vehicle applicability on g s t credit availed
Is this additional depreciation applicable even if 2-wheeler is purchased during the above mentioned period??
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does this period of purchase of vehicle and put to use is extended till june in light of COVID-19
Does this depreciation rate also applied to used (second hand) car purchase in this period.? or only for the New car purchase ?
you will get half percentage ( i.e 30% /2 = 15% ) , since only Rate of Depreciation has been increased from 15% to 30% .
Yes, with this, the rate is changed. As the rate of block of asset is changed, the same will be as per the IT rules. i.e. if used for less than 180 days, half of the rate.and for next year also, the block rate will be 30%
What would be the rate of depreciation for a vehicle purchased for my own business and its being used in my own business
Is this 30% applicable for 1st year for the Car depreciation or its applicable for the remaining years till the car depreciates out?
Is this 30% applicable for 1st year for the Car depreciation or its applicable for the remaining years till the car depreciates out?
Is the enhanced depreciation of 30% applicable for 1st year for the Car depreciation or is applicable for the remaining years till the car depreciates out?
Depreciation @30% will be allowed for the entire life of the car purchased between the period prescribed and put to use.
Suppose I purchase a car 8th October 2019, will I get full 30% depreciation or only 15% as put to use is less than 180 days?