Upto 40% accelerated depreciation in the 1st year of commissioning as tax benefit in the case of businesses. Our one consumer, Mr. Appu, asked, “I have spent Rs 1,33,639 for installing a rooftop solar panel.” “How much income tax reduction will I get this year?” Here, you need to confirm, He has spent this amount for business or individual. If business, then he can get 20% depreciation in this year, and 40% from the next year.
How to Get Solar Tax Benefit?
You need to discuss your CA; he will review your “Tax Audit Report” and advise you of the amount you receive.
Q: What is the depreciation rate for solar panels in businesses?
A: Business owners installing rooftop solar can claim up to 40% depreciation annually. If installed between April and October, 40% depreciation is available in the first year. For installations between November and March, 20% is available initially, followed by 40% in subsequent years, up to 15 years.
