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    • Question

      A company purchases machinery worth ₹10 lakh and puts

      it to use on 1st December. What will be the depreciation rate and amount for the year under the Income Tax Act?
      A 15%, ₹1.5 lakh Correct Answer Incorrect Answer
      B 7.5%, ₹0.75 lakh Correct Answer Incorrect Answer
      C 10%, ₹1 lakh Correct Answer Incorrect Answer
      D 15%, ₹0.5 lakh Correct Answer Incorrect Answer

      Solution

      If asset is used for <180 days, then half rate of depreciation is allowed. Hence, 15% × ½ × ₹10L = ₹0.75 lakh.

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