Section 7(1) in The Kerala Agricultural Income Tax Act, 1991
(1)In respect of depreciation of buildings, machinery, plant or furniture owned by the assessee and used by him for the purpose of deriving the agricultural income the following deductions shall subject to the conditions hereinafter provided be allowed: -(i)such percentage on the written down value of the building, machinery, plant or furniture, as may, in any case or class of cases be prescribed;(ii)where the building has been newly erected or the machinery or plant has been newly installed, a further sum subject to such conditions as may be prescribed:Provided that if the building erected or machinery or plant installed, was not put to use in the year of erection or installation, the further deduction under this clause shall be allowed in the year in which such assets were first put to use:Provided further that the above deductions shall be allowed only if the prescribed particulars have been furnished and the aggregate of all such allowances shall, in no case exceed the original cost to the assessee, of the buildings, machinery, plant or furniture; as the case may be.Explanation: - I. "Plant" includes vehicles and scientific apparatus.II. "Written down value" means-(i)in the case of assets acquired in the previous year, the actual cost to the assessee;(ii)in the case of assets acquired as replacement of the old one, the value realised on the sale of the old asset shall be deducted from the value of the asset acquired; and(iii)in the case of assets acquired before the previous year, the actual cost to the assessee less all depreciations actually allowed to him under this Act or under the Agricultural Income Tax Act, 1950. III. Machinery, plant or furniture obtained by the assessee under hire purchase agreement shall be deemed to be assets owned by the assessee.
