Depreciation Rate Chart As Per Income Tax For 2016-17

What Is Depreciation
While computing profits and gains
from business or profession, a taxpayer can claim depreciation on all those
assets which he has acquired and used for the purpose of his business or
profession. Different depreciation rates are prescribed for different nature of
assets. This write up lists down all such depreciation rates.

Calculation of Depreciation
Depreciation is Calculated as per
the provisions of income tax act for income tax return and companies are
calculated as per companies act. So Depreciation is calculated by two method
one is as per companies act or one is as per income tax act. Today we provide
depreciation chart as per income tax act for easily calculate depreciation.
Depreciation Rate Chart As Per Income Tax
As per Income Tax Act 1962
Depreciation calculation is mandatory. So All firms who furnish return to
income tax return calculate depreciation as per income tax act
Depreciation rates as per I.T Act
for most commonly used assets:
S No.
Asset
Class
Asset
Type
Rate of Depreciation
1.
Building
Residential buildings except
hotels and boarding houses
5%
2.
Building
Hotels and boarding houses
10%
3.
Building
Purely temporary erections such as
wooden structures
100%
4.
Furniture
Furniture – Any furniture /
fittings including electrical fittings
10%
5.
Plant & Machinery
Motor cars other than those used
in a business of running them on hire
15%
6.
Plant & Machinery
Motor buses/taxies/lorries used in
a business of running them on hire
30%
7.
Plant & Machinery
Computers and computer software
60%
8.
Plant & Machinery
Books owned by assessee, carrying
on profession being annual publications
100%
9.
Plant & Machinery
Books owned by assessee, carrying
on profession not being annual publications
60%
10.
Plant & Machinery
Books owned by assessee, carrying
on business in running lending libraries
100%
11.
Intangible Assets
Know how, patents, copyright,
trademark, license, franchise or any other business or commercial rights of
similar nature
25%
Depreciation
rates as per I.T Act – Comprehensive Table
S
No.
Asset
Class
Asset
Type
Rate
of Depreciation
PART
A

TANGIBLE
ASSETS
  I.
Building
[See Notes 1 to 4 below the Table A ]
(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
100%
(4)
Purely temporary erections such as
wooden structures
100%
II.
Furniture & Fittings
Furniture and fittings including
electrical fittings See Note 5 below the Table
10%
III.
Machinery & 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]
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%
(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%
(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
100%
(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
30%
(x) (a) Solidwaste, control
equipments being, – caustic/lime/chrome/ mineral/cryolite recovery system
(b) Solidwaste recycling and resource recovery systems
100%
(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
50%
5)
Computers including computer
software [
See note 7 below the 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 the 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 the Table]
100%
8)
(i) Wooden parts used in
artificial silk manufacturing machinery
100%
(ii) Cinematograph films – bulbs
of studio lights
100%
(iii) Match factories – Wooden
match frames
100%
(iv) Mines and quarries:(a) Tubs,
winding ropes, haulage ropes and sand stowing pipes
(b) Safety lamps
100%
(v) Salt works – Salt pans,
reservoirs and condensers, etc., made of earthy, sandy or clayey material or
any other similar material
100%
(vi) Flour mills – Rollers
80%
(vii) Iron and steel industry –
Rolling mill rolls
80%
(viii) Sugar works – Rollers
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(d) High efficiency boilers
(thermal efficiency higher than 75 percent in case of coal fired and 80 per
cent in case of oil/gas
fired boilers)
80%
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,
electricenergy and power factor meters(f) Maximum demand indicator and clamp
on power meters(g) Exhaust gases analyser(h) Fuel oil pump test bench
80%
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
80%
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
80%
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)
80%
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)
80%
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
80%
(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(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
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 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 after the 1st day
of April, 2014)(Notification No. 43/2014)
(m) Any special devices including
electric generators and pumps
running on wind energy (installed on or after the 1st day of April,
2014) (Notification No. 43/2014)
(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.
80%
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.
1)
Ships
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 program recorded on any disc, tape, perforated
media or other information storage device.
8.    “TUFS”
means Technology Up gradation 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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