80% Depreciation on Wind Mills - No More after 31-03-2012

Income tax department has issued following notification restricting the rate of depreciation allowable on “Wind Mills” installed after 31st March, 2012 to 15% only, which is the normal rate of depreciation on Plant and Machinery.

Thus, income tax department has withdrawn the incentive given for installation of Wind Mills by providing 80% depreciation. This is a major change in respect to Wind Mills industry as it was a major USP in setting up wind mills.

Following is the link to the text of notification.

http://law.incometaxindia.gov.in/DITTaxmann/Notifications/IncomeTaxAct/2010/Notification15_2012.htm

CA Amit Mundhra

80% Depreciation on Wind Mills - No More after 31-03-2012