RATES OF DEPRECIATION UNDER THE INCOME TAX ACT
RATES
OF DEPRECIATION UNDER THE INCOME TAX ACT
TABLE
OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE [See rule 5] APPENDIX I
| Block
of assets |
Depreciation
allowance as percentage of written down value |
| 1 |
2 |
PART
A TANGIBLE ASSETS
| I.
BUILDING [See Notes 1 to 4 below the Table ] |
| 1) |
Buildings
which are used mainly for residential purposes except hotels and
boarding houses |
5 |
| 2) |
Buildings
other than those used mainly for residential purposes and not covered by
sub-items (1) above and (3) below |
10 |
| 3) |
Buildings
acquired on or after the 1st day of September, 2002 for installing
machinery and plant forming part of water supply project or water
treatment system and which is put to use for the purpose of business of
providing infrastructure facilities under clause (i) of subsection (4)
of section 80-IA |
40 |
| 4) |
Purely
temporary erections such as wooden structures |
40 |
| II.
FURNITURE AND FITTINGS |
| |
Furniture
and fittings including electrical fittings [ See
Note 5 below the Table ] |
10 |
| III.
MACHINERY AND PLANT |
| 1) |
Machinery
and plant other than those covered by sub-items (2), (3) and (8) below |
15 |
| 2) |
Motor
cars, other than those used in a business of running them on hire,
acquired or put to use on or after the 1st day of April, 1990 |
15 |
| 3) |
(i)
Aeroplanes - Aeroengines |
40 |
| (ii)
Motor buses, motor lorries and motor taxis used in a business of running
them on hire |
30 |
(iii)
Commercial vehicle which is acquired by the assessee on or after the 1st
day of October, 1998, but before the 1st day of April, 1999 and is put
to use for any period before the 1st day of April, 1999 for the purposes
of business or profession in accordance with the third proviso to clause
(ii) of sub-section (1) of section 32
[ See
Note 6 below the Table ] |
40 |
| (iv)
New commercial vehicle which is acquired on or after the 1st day of
October, 1998, but before the 1st day of April, 1999 in replacement of
condemned vehicle of over 15 years of age and is put to use for any
period before the 1st day of April, 1999 for the purposes of business or
profession in accordance with the third proviso to clause (ii) of
sub-section (1) of section 32 [ See
Note 6 below the Table ] |
40 |
| (v)
New commercial vehicle which is acquired on or after the 1st day of
April, 1999 but before the 1st day of April, 2000 in replacement of
condemned vehicle of over 15 years of age and is put to use before the
1st day of April, 2000 for the purposes of business or profession in
accordance with the second proviso to clause (ii) of sub-section (1) of
section 32 [ See
Note 6 below the Table ] |
40 |
| (vi)
New commercial vehicle which is acquired on or after the 1st day of
April, 2001 but before the 1st day of April, 2002 and is put to use
before the 1st day of April, 2002 for the purposes of business or
profession [ See
Note 6 below the Table ] |
40 |
| (via)New
commercial vehicle which is acquired on or after the 1st day of January,
2009 but before the 1st day of October, 2009 and is put to use before
the 1st day of October, 2009 for the purposes of business or profession
[ See
Note 6 below the Table ] |
40 |
| (vii)
Moulds used in rubber and plastic goods factories |
30 |
|
(viii) Air pollution control equipment, being -
- Electrostatic precipitation systems
- Felt-filter systems
- Dust collector systems
- Scrubber-counter current/venturi/packedbed/cyclonic scrubbers
- Ash handling system and evacuation system
|
40 |
(ix)
Water pollution control equipment, being -
(a) Mechanical screen systems
(b) Aerated detritus chambers (including air compressor)
(c) Mechanically skimmed oil and grease removal systems
(d) Chemical feed systems and flash mixing equipment
(e) Mechanical flocculators and mechanical reactors
(f) Diffused air/mechanically aerated activated sludge systems
(g) Aerated lagoon systems
(h) Biofilters
(i) Methane-recovery anaerobic digester systems
(j) Air floatation systems
(k) Air/steam stripping systems
(l) Urea Hydrolysis systems
(m) Marine outfall systems
(n) Centrifuge for dewatering sludge
(o) Rotating biological contractor or bio-disc
(p) Ion exchange resin column
(q) Activated carbon column |
40 |
(x)
(a) Solidwaste, control equipments being, - caustic/lime/chrome/
mineral/cryolite recovery system
(b) Solidwaste recycling and resource recovery systems |
40 |
|
(xi) Machinery and plant, used in semi-conductor industry covering
all integrated circuits (ICs) (excluding hybrid integrated circuits)
ranging from small scale integration (SSI) to large scale
integration/very large scale integration (LSI/VLSI) as also discrete
semi-conductor devices such as diodes, transistors, thyristors, triacs,
etc., other than those covered by entries (viii), (ix) and (x) of this
sub-item and sub-item (8) below.
|
30 |
|
(xia) Life Saving medical equipment being-
(a) D.C.Defibrillators for internal use and pace makers.
(b) Haemodialysors.
(c) Heart lung machine.
(d) Cobalt therapy unit.
(e) Colour Doppler.
(f) Spect Gamma Camera.
(g) Vascular Angiography System including Digital subtraction
Angiography.
(h) Ventilator used with anaesthesia apparatus.
(i) Magnetic Resonance Imaging System
(j) Surgical Laser.
(k) Ventilator other than those used with anaesthesia
(l) Gamma knife.
(m) Bone Marrow Transplant Equipment including silastic long standing
intravenous catheters for chemotherapy.
(n) Fibreoptic endoscopes including Paediatric resectoscope/audit
resectoscope Peritoneoscopes, Arthoscope, Microaryngoscope, Fibresoptic
Flexible Nasal Pharyngo, Video Laryngo Bronchoscope, fibreoptic Flaxible
Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oescophago
Gastroscope, Stroboscope, Fibreoptic Flexible oesophago Gastroscope.
(o) Laparoscope (single incision)
|
40 |
| 4) |
Containers
made of glass or plastic used as re-fills |
40 |
| 5) |
Computers
including computer software [ See
note 7 below the Table ] |
40 |
| 6) |
Machinery
and plant, used in weaving, processing and garment sector of textile
industry, which is purchased under TUFS on or after the 1st day of
April, 2001 but before the 1st day of April, 2004 and is put to use
before the 1st day of April, 2004
[ See
Note 8 below the Table ] |
40 |
| 7) |
Machinery
and plant, acquired and installed on or after the 1st day of September,
2002 in a water supply project or a water treatment system and which is
put to use for the purpose of business of providing infrastructure
facility under clause (i) of sub-section (4) of section 80-IA [ See
Notes 4 and 9 below the Table] |
40 |
| 8) |
(i)
Wooden parts used in artificial silk manufacturing machinery |
40 |
| (ii)
Cinematograph films - bulbs of studio lights |
40 |
| (iii)
Match factories - Wooden match frames |
40 |
(iv)
Mines and quarries:
(a) Tubs, winding ropes, haulage ropes and sand stowing pipes
(b) Safety lamps |
40 |
| (v)
Salt works - Salt pans, reservoirs and condensers, etc., made of earthy,
sandy or clayey material or any other similar material |
40 |
| (vi)
Flour mills - Rollers |
40 |
| (vii)
Iron and steel industry - Rolling mill rolls |
40 |
| (viii)
Sugar works - Rollers |
40 |
(ix)
Energy saving devices, being-
A. Specialised boilers and furnaces:
(a) Ignifluid/fluidized bed boilers
(b) Flameless furnaces and continuous pusher type furnaces
(c) Fluidized bed type heat treatment furnaces
(d) High efficiency boilers (thermal efficiency higher than75 per
cent in case of coal fired and 80 per cent in case of oil/gas
fired boilers)
|
40 |
|
B. Instrumentation and monitoring system for monitoring energy
flows:
(a) Automatic electrical load monitoring systems
(b) Digital heat loss meters
(c) Micro-processor based control systems
(d) Infra-red thermography
(e) Meters for measuring heat losses, furnace oil flow, steam flow,
electricz
energy and power factor meters
(f) Maximum demand indicator and clamp on power meters
(g) Exhaust gases analyser
(h) Fuel oil pump test bench
|
40 |
|
C. Waste heat recovery equipment:
(a) Economisers and feed water heaters
(b) Recuperators and air pre-heaters
(c) Heat pumps
(d) Thermal energy wheel for high and low temperature waste
heat recovery
|
40 |
D. Co-generation systems:
(a) Back pressure pass out, controlled extraction, extractioncum-
condensing turbines for co-generation along with pressure boilers
(b) Vapour absorption refrigeration systems
(c) Organic rankine cycle power systems
(d) Low inlet pressure small steam turbines |
40 |
|
E. Electrical equipment:
(a) Shunt capacitors and synchronous condenser systems
(b) Automatic power cut off devices (relays) mounted on individual
motors
(c) Automatic voltage controller
(d) Power factor controller for AC motors
(e) Solid state devices for controlling motor speeds
(f) Thermally energy-efficient stenters (which require 800 or less
kilocalories of heat to evaporate one kilogram of water)
(g) Series compensation equipment
(h) Flexible AC Transmission (FACT) devices - Thyristor controlled
series compensation equipment
(i) Time of Day (TOD) energy meters
(j) Equipment to establish transmission highways for National
Power Grid to facilitate transfer of surplus power of one
region to the deficient region
(k) Remote terminal units/intelligent electronic devices,
computer hardware/software, router/bridges, other required
equipment and associated communication systems for
supervisory control and data acquisition systems, energy
management systems and distribution management systems
for power transmission systems
(l) Special energy meters for Availability Based Tariff (ABT) |
40 |
F.
Burners:
(a) 0 to 10 per cent excess air burners
(b) Emulsion burners
(c) Burners using air with high pre-heat temperature (above 300°C) |
40 |
G.
Other equipment:
(a) Wet air oxidation equipment for recovery of chemicals and heat
(b) Mechanical vapour recompressors
(c) Thin film evaporators
(d) Automatic micro-processor based load demand controllers
(e) Coal based producer gas plants
(f) Fluid drives and fluid couplings
(g) Turbo charges/super-charges
(h) Sealed radiation sources for radiation processing plants
|
40 |
| (x)
Gas cylinders including valves and regulators |
40 |
| (xi)
Glass manufacturing concerns - Direct fire glass melting furnaces |
40 |
(xii)
Mineral oil concerns:
(a) Plant used in field operations (above ground) distribution -
Returnable packages
(b) Plant used in field operations (below ground), but not
including kerbside pumps including under ground tanks and
fittings used in field operations (distribution) by mineral oil
concerns
(c) Oil wells not covered in clauses (a) and (b)"(with effect from
the assessment year 2016-17) |
40
15 |
|
(xiii) Renewal energy devices being -
(a) Flat plate solar collectors
(b) Concentrating and pipe type solar collectors
(c) Solar cookers
(d) Solar water heaters and systems
(e) Air/gas/fluid heating systems
(f) Solar crop drivers and systems
(g) Solar refrigeration, cold storages and air conditioning systems
(h) Solar steels and desalination systems
(i) Solar power generating systems
(j) Solar pumps based on solar-thermal and solar-photovoltaic conversion
(k) Solar-photovoltaic modules and panels for water pumping and other
applications
(l) Wind mills and any specially designed devices which run on wind
mills installed on or before March 31, 2012 or installed on or
after 1st day of April, 2014
(m) Any special devices including electric generators and pumps
running on wind energy installed on or before March 31, 2012
or installed on or after 1st day of April, 2014
(n) Biogas-plant and biogas-engines
(o) Electrically operated vehicles including battery powered or
fuel-cell powered vehicles
(p) Agricultural and municipal waste conversion devices producing energy
(q) Equipment for utilising ocean waste and thermal energy
(r) Machinery and plant used in the manufacture of any of the
above sub-items.
|
40 |
| |
|
| 9) |
i)
Books owned by assessees carrying on a profession -
(a) Books, being annual publications
(b) Books, other than those covered by entry (a) above
|
40
40 |
| ii)
Books owned by assessees carrying on business in running lending
libraries |
40 |
| IV.
SHIPS |
| 1) |
Ocean-going
ships including dredgers, tugs, barges, survey launches and other
similar ships used mainly for dredging purposes and fishing vessels with
wooden hull |
20 |
| 2) |
Vessels
ordinarily operating on inland waters, not covered by sub-item (3) below |
20 |
| 3) |
Vessels
ordinarily operating on inland waters being speed boats [ See Note 10 below the Table] |
20 |
PART
B INTANGIBLE ASSETS
| |
Know-how,
patents, copyrights, trademarks, licences, franchises or any other
business or commercial rights of similar nature |
25 |
Notes:
1.
"Buildings" include roads, bridges, culverts, wells and tubewells.
2.
A building shall be deemed to be a building used mainly for residential
purposes, if the built-up floor area thereof used for residential purposes is
not less than sixty-six and two-third per cent of its total built up floor area
and shall include any such building in the factory premises.
3.
In respect of any structure or work by way of renovation or improvement in or in
relation to a building referred to in Explanation 1 of clause (ii) of
sub-section (1) of section 32, the percentage to be applied will be the
percentage specified against sub-item (1) or (2) of item I as may be appropriate
to the class of building in or in relation to which the renovation or
improvement is effected. Where the structure is constructed or the work is done
by way of extension of any such building, the percentage to be applied would be
such percentage as would be appropriate, as if the structure or work constituted
a separate building.
4.
Water treatment system includes system for desalinisation, demineralisation and
purification of water.
5.
"Electrical fittings" include electrical wiring, switches, sockets,
other fittings and fans, etc.
6.
"Commercial vehicle" means "heavy goods vehicle",
"heavy passenger motor vehicle", "light motor vehicle",
"medium goods vehicle" and "medium passenger motor vehicle"
but does not include "maxi-cab", "motor-cab",
"tractor" and "road-roller". The expressions "heavy
goods vehicle", "heavy passenger motor vehicle", "light
motor vehicle", "medium goods vehicle", "medium passenger
motor vehicle", "maxi-cab", "motor-cab",
"tractor" and "roadroller" shall have the meanings
respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988
(59 of 1988).
7.
"Computer software" means any computer programme recorded on any disc,
tape, perforated media or other information storage device.
8.
"TUFS" means Technology Upgradation Fund Scheme announced by the
Government of Indiain the form of a Resolution of the Ministry of Textiles vide
No.28/1/99-CTI of 31.3.1999.
9.
Machinery and plant includes pipes needed for delivery from the source of supply
of raw water to the plant and from the plant to the storage facility.
10.
"Speed boat" means a motor boat driven by a high speed internal
combustion engine capable of propelling the boat at a speed exceeding 24
kilometres per hour in still water and so designed that when running at a speed,
it will plane, i.e., its bow will rise from the water.'/
|