Income Tax Act, 1961
Section 6: Ins. by Act 21 of 1998, s. 9 (w.e.f. 11999).
6. Ins. by Act 21 of 1998, s. 9 (w.e.f. 11999).
7. Subs. by Act 33 of 2009, s. 11, for ‘the expressions “assets” and “block of assets” (w.e.f. 12010).
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(b) intangible assets, being know-how, patents, copyrights, trade marks, licences, franchises
or any other business or commercial rights of similar nature.
Explanation 4.—For the purposes of this sub-section, the expression “know-how” means any
industrial information or technique likely to assist in the manufacture or processing of goods or in
the working of a mine, oil-well or other sources of mineral deposits (including searching for
discovery or testing of deposits for the winning of access thereto).]
1[Explanation 5.—For the removal of doubts, it is hereby declared that the provisions of this
sub-section shall apply whether or not the assessee has claimed the deduction in respect of
depreciation in computing his total income;]
2[(iia) in the case of any new machinery or plant (other than ships and aircraft), which has been
acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of
manufacture or production of any article or thing 3[4[or in the business of generation, transmission or
distribution] of power], a further sum equal to twenty per cent. of the actual cost of such machinery or
plant shall be allowed as deduction under clause (ii):
5[Provided that where an assessee, sets up an undertaking or enterprise for manufacture or
production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified
by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in
the State of Telangana or in the State of West Bengal, and acquires and installs any new machinery or
plant (other than ships and aircraft) for the purposes of the said undertaking or enterprise during the
period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the
said backward area, then, the provisions of clause (iia) shall have effect, as if for the words “twenty
per cent.”, the words “thirty-five per cent.” had been substituted:]
6[Provided further] that no deduction shall be allowed in respect of—
(A) any machinery or plant which, before its installation by the assessee, was used either
within or outside India by any other person; or
(B) any machinery or plant installed in any office premises or any residential accommodation,
including accommodation in the nature of a guest-house; or
(C) any office appliances or road transport vehicles; or
(D) any machinery or plant, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable under the
head “Profits and gains of business or profession” of any one previous year;]
7[(iii) in the case of any building, machinery, plant or furniture in respect of which depreciation is
claimed and allowed under clause (i) and which is sold, discarded, demolished or destroyed in the
previous year (other than the previous year in which it is first brought into use), the amount by which
intangible assets, being know-how, patents, copyrights, trade marks, licences, franchises
or any other business or commercial rights of similar nature.
Explanation 4.—For the purposes of this sub-section, the expression “know-how” means any
industrial information or technique likely to assist in the manufacture or processing of goods or in
the working of a mine, oil-well or other sources of mineral deposits (including searching for
discovery or testing of deposits for the winning of access thereto).]
1[Explanation 5.—For the removal of doubts, it is hereby declared that the provisions of this
sub-section shall apply whether or not the assessee has claimed the deduction in respect of
depreciation in computing his total income;]
2[
in the case of any new machinery or plant (other than ships and aircraft), which has been
acquired and installed after the 31st day of March, 2005, by an assessee engaged in the business of
manufacture or production of any article or thing 3[4[or in the business of generation, transmission or
distribution] of power], a further sum equal to twenty per cent. of the actual cost of such machinery or
plant shall be allowed as deduction under clause
shall have effect, as if for the words “twenty
per cent.”, the words “thirty-five per cent.” had been substituted:]
6[Provided further] that no deduction shall be allowed in respect of—
any machinery or plant which, before its installation by the assessee, was used either
within or outside India by any other person; or
any machinery or plant installed in any office premises or any residential accommodation,
including accommodation in the nature of a guest-house; or
any office appliances or road transport vehicles; or
any machinery or plant, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable under the
head “Profits and gains of business or profession” of any one previous year;]
7[
in the case of any building, machinery, plant or furniture in respect of which depreciation is
claimed and allowed under clause
and which is sold, discarded, demolished or destroyed in the
previous year (other than the previous year in which it is first brought into use), the amount by which