Income Tax Depreciation Rates Chart

By | June 13, 2016
(Last Updated On: June 13, 2016)

Income Tax Depreciation Rates

 APPENDIX I

(Substituted by the IT (Sixth Amdt.) Rules, 2005, w.e.f. 2-4-2005.)

[Effective from assessment year 2006-07 onwards]

[See rule 5]

TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE

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 this 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 sub-section (4) of section 80-IA

100

(4) Purely temporary erections such as wooden structures

100
II. Furniture and fittings

Furniture and fittings including electrical fittings

[See Note 5 below this 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 [SeeNote 6 below this 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 this Table]

60

(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 this Table]

60

(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 this Table]

50

(via) New commercial vehicle which is acquired on or after the 1st day of January, 2009 but before the 1st day of October [Substituted for “April” by the IT (Eleventh Amdt.) Rules, 2009, w.e.f. 1-4-2010.] , 2009 and is put to use before the 1st day of October  [Substituted for “April” by the IT (Eleventh Amdt.) Rules, 2009, w.e.f. 1-4-2010.] , 2009 for the purposes of business or profession [See paragraph 6 of the Notes below this Table [Inserted by the IT (Third Amdt.) Rules, 2009, w.e.f. 1-4-2009]

50]

(vii) Moulds used in rubber and plastic goods factories

30

(viii) Air pollution control equipment, being—

(a) Electrostatic precipitation systems

(b) Felt-filter systems

(c) Dust collector systems

100

(d) Scrubber-counter current/venturi/packed bed/cyclonic scrubbers

(e) Ash handling system and evacuation system

(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

100

(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

(x)  (a) Solidwaste, control equipment being – caustic/lime/chrome/mineral/cryolite recovery systems

100

(b) Solidwaste recycling and resource recovery systems

(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

(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

40

(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) Fibre optic endoscopes including, Paediatric resectoscope/audit resectoscope, Peritoneoscopes, Arthoscope, Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope, Fibreoptic Flexible Oesophago Gastroscope

(o) Laparoscope (single incision)

(4) Containers made of glass or plastic used as re-fills

50

(5) Computers including computer software (See Note 7 below this Table)

60

(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 this Table]

50

(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 this Table]

100

 (8)    (i)  Wooden parts used in artificial silk manufacturing machinery

(ii) Cinematograph films – bulbs of studio lights

(iii) Match factories – Wooden match frames

(iv) Mines and quarries :

(a) Tubs winding ropes, haulage ropes and sand stowing pipes

100

(b) Safety lamps

(v) Salt works – Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material

(vi) Flour mills – Rollers

(vii) Iron and steel industry – Rolling mill rolls

80

(viii) Sugar works – Rollers

(ix) Energy saving devices, being—

A. Specialised boilers and furnaces :

(a) Ignifluid/fluidized bed boilers

(b) Flameless furnaces and continuous pusher type furnaces

80

(c) Fluidized bed type heat treatment furnaces

(d) High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers)

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

80

(e) Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters

(f) Maximum demand indicator and clamp on power meters

(g) Exhaust gases analyzer

(h) Fuel oil pump test bench

C. Waste heat recovery equipment:

(a) Economisers and feed water heaters

(b) Recuperators and air pre-heaters

(c) Heat pumps

80

(d) Thermal energy wheel for high and low temperature waste heat recovery

D. Co-generation systems:

(a) Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers

(b) Vapour absorption refrigeration systems

80

(c) Organic rankine cycle power systems

(d) Low inlet pressure small steam turbines

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

80

(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)

F. Burners:

(a) 0 to 10 per cent excess air burners

(b) Emulsion burners

80

(c) Burners using air with high pre-heat temperature (above 300°C)

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

80

(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

(x) Gas cylinders including valves and regulators

60

(xi) Glass manufacturing concerns – Direct fire glass melting furnaces 60

(xii) Mineral oil concerns:

(a) Plant used in field operations (above ground) distribution – Returnable packages

60

(b) Plant used in field operations (below ground), but not including kerbside pumps including underground tanks and fittings used in field operations (distribution) by mineral oil concerns

(c) Oil wells not covered in clauses (a) and (b) [Entry (c) inserted by the Income-tax (Fourth Amendment) Rules, 2016, w.e.f. 1-4-2016.]

15

(xiii) Renewable 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 driers and systems

(g) Solar refrigeration, cold storages and air conditioning systems

80

(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 after the 1st day of April, 2014 [*Substituted for “installed on or before 31st day of March, 2012″ by Income-tax (Eighth Amendment) Rules, 2014, w.e.f. 16-9-2014. Earlier, quoted words were inserted by Income-tax (Fourth Amendment) Rules, 2012, w.e.f. 1-4-2012.]

(m) Any special devices including electric generators and pumps running on wind energy *installed on or after the 1st day of April, 2014 [*Substituted for “installed on or before 31st day of March, 2012″ by Income-tax (Eighth Amendment) Rules, 2014, w.e.f. 16-9-2014. Earlier, quoted words were inserted by Income-tax (Fourth Amendment) Rules, 2012, w.e.f. 1-4-2012.]

(n) Biogas-plant and biogas-engines

(o) Electrically operated vehicles including battery powered or fuel-cell powered vehicles

80

(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

(9)   (i)   Books owned by assessees carrying on a profession—

(a) Books, being annual publications

100

(b) Books, other than those covered by entry (a) above

60

(ii)  Books owned by assessees carrying on business in running lending libraries

100
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 this 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 1 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 desalination, 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 “road-roller” shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

[Clauses (16), (17), (21), (22), (23), (24), (25) and (44) of section 2 of the Motor Vehicles Act, 1988, define “heavy goods vehicle”, “heavy passenger motor vehicle”, “light-motor vehicle”, “maxi-cab”, “medium goods vehicle”, “medium passenger motor vehicle”, “motor-cab” and “tractor” as follows :

‘(16) “heavy goods vehicle” means any goods carriage the gross vehicle weight of which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000 kilograms;

(17) “heavy passenger motor vehicle” means any public service vehicle or private service vehicle or educational institution bus or omnibus the gross vehicle weight of any of which, or a motor car the unladen weight of which, exceeds 12,000 kilograms;

** ** **

(21) “light motor vehicle” means a transport vehicle or omnibus the gross vehicle weight of either of which or a motor car or tractor or road-roller the unladen weight of any of which, does not exceed 7500 kilograms;

(22) “maxi-cab” means any motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver, for hire or reward;

(23) “medium goods vehicle” means any goods carriage other than a light motor vehicle or a heavy goods vehicle;

(24) “medium passenger motor vehicle” means any public service vehicle or private service vehicle, or educational institution bus other than a motor cycle, invalid carriage, light motor vehicle or heavy passenger motor vehicle;

(25) “motor-cab” means any motor vehicle constructed or adapted to carry not more than six passengers excluding the driver for hire or reward;

** ** **

(44) “tractor” means a motor vehicle which is not itself constructed to carry any load (other than equipment used for the purpose of propulsion); but excludes a road-roller;’ ]

 7.  “Computer software” means any computer program recorded on any disc, tape, perforated media or other information storage device.

 8.  “TUFS” means Technology Upgradation Fund Scheme announced by the Government of India in 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.]

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