Depreciation Rates – Income Tax & Companies Act

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Rate of Depreciation as per Income Tax & Companies Act

Rates of depreciation
(for income-tax)
AS APPLICABLE FROM THE ASSESSMENT YEAR 2003-04 ONWARDS
Block of assets
[
see para
48.3-3]
Depreciation allowance
as  percentage of written down value
AYs 2003-04 to 2005-06
 AY 2006-07 onwards
1
2
3
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
5
(2
Buildings other than those used mainly for residential purposes and not
covered by sub-items (1) above and (3) below
10
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
100
(4
Purely temporary erections such as wooden structures
100
100
II. FURNITURE AND
FITTINGS
Furniture and fittings including electrical
fittings [See Note 5 below the Table]
15
10
III. MACHINERY AND
PLANT
(1
Machinery and plant other than those covered by sub-items (2), (3) and (8)
below :
25c.
15c.
a.(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
20
15
(3)     
(i)   Aeroplanes – Aeroengines
40
40
b.(ii) Motor buses, motor lorries and motor taxis used in a
business of running them on hire
40
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 the Table]
40
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]
60
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 the Table]
60
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 the Table]
50
50
(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 paragraph
6 of the Notes below this Table]
50
d.(vii) Moulds used in rubber and plastic goods factories
40
30
(viii
Air pollution control equipment, being—
(a
Electrostatic precipitation systems
(b
Felt-filter systems
(c)  Dust
collector systems
100
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
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 equipments being –
caustic/lime/chrome/mineral/cryolite recovery systems
100
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
40
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
40
40
(k) Ventilators
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, Microlaryngoscope, Fibreoptic Flexible Nasal
Pharyngo Bronchoscope, Fibreoptic Flexi-ble 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
50
(5
Computers including computer software [See note 7 below the
Table]
60
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 the Table]
50
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 the Table]
100
100
(8)     
(i)  Wooden parts used in artificial silk manufacturing machinery
100
100
(ii)
Cinematograph films – bulbs of studio lights
100
100
(iii) Match
factories – Wooden match frames
100
100
(iv) Mines and
quarries :
(a) Tubs,
winding ropes, haulage ropes and sand stowing pipes
100
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
100
100
(vi
Flour mills – Rollers
80
80
(vii) Iron and
steel industry – Rolling mill rolls
80
80
(viii) Sugar
works – Rollers
80
80
(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
80
80
(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
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 analyser
(h) Fuel oil
pump test bench
C.  Waste heat recovery equipment:
(a
Economisers and feed water heaters
(b)
Recuperators and air pre-heaters
80
80
(c) Heat pumps
(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
80
80
(b) Vapour
absorption refrigeration systems
(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
(h
Flexible AC Transmission (FACT) devices – Thyristor controlled series
compensation equipment
80
80
(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
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
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
f.(x)  Gas cylinders including valves and regulators
80
60
(xi
Glass manufacturing concerns – Direct fire glass melting furnaces
80
60
g.(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 underground tanks and fittings used in field operations
(distribution) by mineral oil concerns
80
60
(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
driers 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
80
80
(l) Windmills
and any specially designed devices which run on wind-mills installed on or
before March 31, 2012
(m) Any special
devices including electric generators and pumps running on wind energy
installed on or before March 31, 2012
(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
(9)   
(i) Books owned by assessees carrying on a profession—
(a
Books, being annual publications
100
100
(b
Books, other than those covered by entry (a) above
60
60
(ii
Books owned by assessees carrying on business in running lending libraries
100
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
25
20
(2) Vessels ordinarily
operating on inland waters, not covered by sub-item (3) below
25
20
(3) Vessels ordinarily
operating on inland waters being speed boats [See Note 10 below
the Table]
25
20
PART B
INTANGIBLE ASSETS
Know-how, patents,
copyrights, trademarks, licences, franchises or any other business or
commercial rights of similar nature
25
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 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 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 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 kilometers 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.


Depreciation rates for power generating units
(applicable from the assessment year 1998-99)
Class of assets
Depreciation allowance
as percentage of actual cost
(a)  Plant
and Machinery in generating stations including plant foundations :—
 (i
Hydro-electric
3.4
(ii
Steam electric NHRS & Waste heat recovery Boilers/plants
7.84
(iii) Diesel
electric and Gas plant
8.24
(b) Cooling
towers and circulating water systems
7.84
(c
Hydraulic works forming part of Hydro-electric system including :—
 (i
Dams, spillways weirs, canals, reinforced concrete flumes and syphons
1.95
(ii
Reinforced concrete pipelines and surge tanks steel pipelines, sluice gates,
steel surge (tanks), hydraulic control valves and other hydraulic works.
3.4
(d
Building and civil engineering works of permanent character, not mentioned
above
 (i
Office & showrooms
3.02
(ii
Containing Thermo-electric generating plant
7.84
(iii)
Containing Hydro-electric generating plant
3.4
(iv) Temporary
erection such as wooden structures
33.4
(v)  Roads
other than Kutcha roads
3.02
(vi) Others
3.02
(e
Transformers, transformer (Kiosk) sub-station equipment & other fixed
apparatus (including plant foundations)
 (i
Transformers (including foundations) having a rating of 100 kilo volt amperes
and over
7.81
(ii
Others
7.84
(f
Switchgear including cable connections
7.84
(g) Lightning
arrestor :
 (i
Station type
7.84
(ii)  Pole
type
12.77
(iii)
Synchronous condenser
5.27
(h
Batteries
33.4
 (i
Underground cable including joint boxes and disconnectioned boxes
5.27
(ii
Cable duct system
3.02
 (i)
Overhead lines including supports :
 (i
Lines on fabricated steel operating at nominal voltages higher than 66 kilo
volts
5.27
(ii
Lines on steel supports operating at nominal voltages higher than 13.2 kilo
volts but not exceeding 66 kilo volts
7.84
(iii) Lines on
steel or reinforced concrete supports
7.84
(iv) Lines on
treated wood supports
7.84
(j
Meters
12.77
(k)
Self-propelled vehicles
33.40
(l
Air-conditioning plants :
 (i
Static
12.77
(ii
Portable
33.40
(m)    
(i) Office furniture and fittings
12.77
(ii) Office
equipments
12.77
(iii) Internal
wiring including fittings and apparatus
12.77
(iv) Street
light fittings
12.77
(n
Apparatus let on hire
(i) Other than
motors
33.4
(ii) Motors
12.77
(o)
Communication equipment :
 (i
Radio and high frequency carrier system
12.77
(ii) Telephone
lines and telephones
12.77
(p) Any other
assets not covered above
7.69
Rates of depreciation under Companies Act
SCHEDULE XIV
[See sections
205 and 350]
RATES
OF DEPRECIATION
Nature of assets
Single Shift
Double Shift
Triple Shift
WDV
SLM
WDV
SLM
WDV
SLM
1
2
3
4
5
6
7
I.  (a) BUILDINGS (other than
factory buildings) [NESD]
5%
1.63%
…..
…..
…..
…..
 (b)
FACTORY BUILDINGS
10%
3.34%
…..
…..
…..
…..
 (c) PURELY
TEMPORARY ERECTIONS such as wooden structures
100%
100%
…..
…..
…..
…..
II.  PLANT AND MACHINERY
1[(i) General rate applicable to,—
(a)  plant
and machinery (not being a ship) other than continuous process plant for
which no special rate has been prescribed under (ii) below
13.91%
4.75%
20.87%
7.42%
27.82%
10.34%
(b
continuous process plant, for which no special rate has been prescribed under (ii) below
[NESD]
15.33%
5.28%
…..
…..
…..
…..]
(ii
Special rates
A. 1.  Cinematograph films – Machinery used in
the production and exhibition of cinematograph films [NESD]
(a) Recording
equipment, reproducing equipment, developing machines, printing machines,
editing machines, synchronisers and studio lights except bulbs
20%
7.07%
…..
…..
…..
…..
(b) Projecting
equipment of film exhibiting concerns
 2.   Cycles [NESD]
 3[3.  Electrical machinery,
X-ray and electro-therapeutic apparatus and accessories thereto, medical,
diagnostic equipments, namely, cat-scan, ultrasound machines, ECG monitors,
etc. [NESD]
20%
7.07%
 …..
…..
…..
…..
 4.   Juice boiling pans (karhais)
[NESD]
20%
7.07%
…..
…..
…..
…..
 5.   Motor-cars, motor-cycles,
scooters and other mopeds [NESD]
25.89%
9.5%
…..
…..
…..
…..
 6.   Electrically operated vehicles
including battery powered or fuel cell powered vehicles [NESD]
20%
7.07%
…..
…..
…..
…..
 7.   Sugarcane crushers (indigenous
kolhus and belans) [NESD]
20%
7.07%
…..
…..
…..
…..
 8.   Glass manufacturing concerns
except direct fire glass melting furnaces – Recuperative and regenerative
glass melting furnaces
20%
7.07%
30%
11.31%
40%
16.21%
 9.  Machinery used in the manufacture of
electronic goods and components
15.62%
5.38%
23.42%
8.46%
31.23%
11.87%]
B. 1.  4[Aeroplanes,
aero engines, simulators, visual system and quick engine change equipment
[NESD]
16.2%
5.6%]
 2.  Concrete pipes manufacture—Moulds
[NESD]
 3.  Drum containers manufacture—Moulds
[NESD]
 4.  Earth-moving machinery employed in
heavy construction works, such as dams, tunnels, canals, etc. [NESD]
 5.  Glass manufacturing concerns except
direct fire glass melting furnaces—Moulds [NESD]
 6.  Moulds in iron foundries [NESD]
 7.   Mineral oil concerns—Field
operations (above ground)—Portable boilers, drilling tools, well-head tanks,
rigs, etc. [NESD]
30%
11.31%
…..
…..
…..
…..
7A.  Rigs (NESD)
10%
3.34%
…..
…..
…..
…..
 8.  Mines and quarries—Portable underground
machinery and earth-moving machinery used in open cast mining [NESD]
 9.  Motor buses and motor lorries other
than those used in a business of running them on hire [NESD]
9A. Motor tractors, harvesting combines [NESD]
10.  Patterns, dies and templates [NESD]
11.  Ropeway structures—Ropeways, ropes and
trestle sheaves and connected parts [NESD]
12.  Shoe and other leather goods
fabrics—Wooden lasts used in the manufacture of shoes
30%
11.31%
45%
18.96%
60%
29.05%
C. 1.  5[** ** **]
 2.  Motor buses, motor lorries and motor
taxis used in a business of running them on hire [NESD]
40%
16.21%
…..
…..
…..
…..
 3.  Rubber and plastic goods
factories—Moulds [NESD]
 4.  Data processing machines including
computers [NESD]
 5.  Gas cylinders including valves and
regulators [NESD]
40%
16.21%
…..
…..
…..
…..
 D. 1.  Artificial silk manufacturing machinery with
wooden parts
 2.  Cinematograph films—Bulbs of studio
lights
100%
100%
…..
…..
…..
…..
 3.  Flour mills—Rollers
 4.  Glass manufacturing concerns—Direct
fire glass melting furnaces
4A. Flot Glass Melting Furnaces (NESD)
27%
10%
…..
…..
…..
…..
 5.  Iron and Steel industries—Rolling mill
rolls
 6.  Match factories—Wooden match frames
 7.   Mineral oil concerns—(a)
Plant used in field operations (below ground)—Distribution – returnable
packages; (b) Plant used in field operations (below ground) but not
including assets used in field operations (distribution)—Kerbside pumps
including underground tanks and fittings
100%
100%
…..
…..
…..
…..
 8.  Mines and quarries—
(a)  Tubs,
winding ropes, haulage ropes and sand stowing pipes
(b
Safety lamps
 9.   Salt works—Salt pans, reservoirs
and condensers, etc., made of earthy, sandy or clay material or any other
similar material
10.  Sugar works—Rollers
III. FURNITURE AND
FITTINGS
6[1.  General Rates [NESD]
18.1%
6.33%
…..
…..
…..
…..
 2.  Rate for furniture and fittings used in
hotels, restaurants and boarding houses; schools, colleges and other
educational institutions, libraries; welfare centres; meeting halls, cinema
houses; theatres and circuses; and for furniture and fittings let out on hire
for use on the occasion of marriages and similar functions [NESD]
25.88%
9.5%
…..
…..
…..
…..]
IV. SHIPS
 1.  Ocean-going ships—
 (i
Fishing vessels with wooden hull [NESD]
(ii
Dredgers, tugs, barges, survey launches and other similar ships used mainly
for dredging purposes [NESD]
27.05%
10%
…..
…..
…..
…..
(iii) Other
ships [NESD]
19.8%
7%
…..
…..
…..
…..
 2.  Vessels ordinarily operating on inland
waters—
 (i
Speed boats [NESD]
14.6%
5%
…..
…..
…..
…..
(ii
Other vessels [NESD]
■  WDV means written down value.
20%
7.07%
…..
…..
…..
…..
■  SLM means
straight line method.
10%
3.34%
…..
…..
…..
…..
   
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