Generally, depreciation is an allowance which is available for persons/entities having income from business or profession.
As per the CBDT Notification No. 103/2016, the highest rate of depreciation allowable as per income tax has been restricted to 40% for all assets, which were eligible for depreciation at a rate higher than 40%.
The amendment is applicable with effect from 01 April 2017 i.e. F.Y. 2017-18.
The Notification restricts the highest rate of depreciation to 40% for all assets which were eligible for depreciation at a rate higher than 40%.
This applies to all taxpayers, including newly set-up domestic manufacturing companies set up and registered on or after 1 March 2016, which opt for concessional rate of 25% rate of tax (instead of the normal rate of 30%) without any tax incentives (new companies).
Revised depreciation rate needs to be considered while calculating advance tax liability for your company.