16B. Allowances of 3 years write-off for machinery and plant, and 100 per cent write-off for computer, prescribed office automation equipment etc.

Notwithstanding section 16, where a person carrying on a trade, profession or business incurs capital expenditure on the provision of machinery or plant for the purposes of that trade, profession or business, he shall, in lieu of the allowances provided by section 16, be entitled for a period of 3 years to an annual allowance of 33⅓ per cent in respect of the capital expenditure incurred.

Notwithstanding section 16, where a person proves to the satisfaction of the Collector that he has installed a computer or other prescribed automation equipment for the purposes of a trade, business or profession carried on by him, he shall, in lieu of the allowances provided by subsection (1) or section 16, be entitled, if he so elects, to an allowance of 100 per cent in respect of the capital expenditure incurred on the provision of that computer or automation equipment.

Notwithstanding section 16 and subject to subsection (4), where a person proves to the satisfaction of the Collector that he has incurred capital expenditure not exceeding $2,000 on the provision of any item of machinery or plant for the purposes of a trade, profession or business carried on by him, he shall, in lieu of the allowances provided by subsection (1)

The aggregate amount of allowances claimed by any person under subsection (3) for any year of assessment shall not exceed $30,000;

No allowance shall be made under subsection (3) in respect of any item of machinery or plant which is acquired under a hire-purchase agreement and the original cost of that item of machinery or plant exceeds $2,000.

Any claim by a person for allowances in respect of any machinery or plant under this section for any year of assessment shall not be disallowed by reason only that the person has not in use the machinery or plant at the end of the basis period for that year of assessment.

Any claim for allowances under this section shall be made at the time of lodgment of the return of income for the relevant years of assessment or within such further time as the Collector may allow.

Where any allowance has been claimed and allowed under this section for any year of assessment, no allowances shall be made in any subsequent year of assessment under section 16 in respect of such expenditure.

Subject to subsection (3), where any allowance has been claimed and allowed under section 16 in respect of any expenditure, no allowances shall, except with the approval of the Minister and subject to such conditions as he may impose, be made in any subsequent year of assessment

This section applies to any machinery or plant acquired on or after 1st January 2009.