Additional Depreciation under Section 32(1)(iia): A Manufacturer's Guide
Who qualifies for 20% additional depreciation on new plant & machinery, the 180-day trap that splits it 10%+10%, and why the concessional tax regime switches it off.
Section 32(1)(iia) offers manufacturers a genuine cash benefit: an extra 20% depreciation, on top of normal depreciation, in the year new plant & machinery is installed. But the eligibility conditions are strict, and the 180-day rule complicates the timing.
Who qualifies
- The entity must be engaged in manufacturing or production of an article or thing (or in generation/distribution of power).
- The asset must be new plant & machinery — not second-hand, not previously used by anyone else.
- It excludes office appliances, road transport vehicles, ships and aircraft, and any plant installed in office or residential premises.
The 180-day split
If the qualifying asset is used for less than 180 days in its first year, you can claim only half — 10% — that year, and the balance 10% is allowed in the immediately following year. Tracking that carry-forward correctly across years is precisely where manual workings drift.
AssetOS evaluates every eligibility condition, applies 20% (or 10% + 10% carry-forward), and keeps additional depreciation separate from normal depreciation in the block computation and in Form 26 Clause 36 — so you capture every rupee you're entitled to, and none you aren't.