Commercial Solar Tax Shield Calculator

Under Section 32 of the Income Tax Act, solar power generating equipment qualifies as a "Renewable Energy Device" eligible for 40% depreciation per annum on a written-down-value (WDV) basis. If the asset is used for less than 180 days in the financial year it's put into use, the first-year claim is halved to 20%, the full 40% applies from Year 2 onward regardless. This is a standard corporate tax provision, not solar- or Uttar-Pradesh-specific, confirm applicability with your CA, especially if your business has opted into a concessional tax regime, since some regimes restrict certain depreciation benefits.