Q17. Section 32AD provides a deduction of 15% of the actual cost of some P&M. If that P&M is used only for 25 days in the PY, how much deeuction will be available to assessee?

a) 15%
b) 7.5%
c) Usage is not relevant for this deduction
d) None of these

[Answer will be uploaded with the next question]

Q18. Mr. A gets his business valued and finds that the goodwill of his business is worth Rs. 2 Crores in current times. He accounts for this goodwill in his books?. What will be the rate of depreciation for this goodwill?

a) 10%
b) 25%
c) 15%
d) None of these

[Answer to Q17 is part (a). Deduction of 15% u/s 32AD is available upon INSTALLATION of the new P&M irrespective of whether it is put to use or not. Since the question tells us that the P&M was put to use for 25 days, it clearly indicates that the P&M was Installed since P&M cannot be used without installation

Also, this is not depreciation, hence, the condition of checking 180 days usage limit is not applicable here]

Answer to Q18 is part (d). Only ACQUIRED intangible assets are eligible for depreciation u/s 32. Self-generated intangibles are not eligible for any depreciation