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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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