Depreciation Rate as per Income tax for Financial Year 2018–19

Depre­ci­a­tion Rate as per Income tax for Finan­cial Year 2018–19

Block of assets Depre­ci­a­tion Rate for AY 2006-07 to AY 2017–18 Depre­ci­a­tion Rate for AY 2018–19  onwards
TANGIBLE ASSETS    
I. BUILDING     
(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 infra- struc­ture facil­i­ties under clause (i) of sub-sec­tion (4) of sec­tion 80-IA 100 40
(4)  Pure­ly tem­po­rary erec­tions such as wood­en struc­tures 100 40
II. FURNITURE AND FITTINGS    
Fur­ni­ture and fit­tings includ­ing elec­tri­cal fit­tings 10 10
III. MACHINERY AND PLANT    
(1)   Machin­ery and plant oth­er than those cov­ered by sub-items (2), (3) and (8) 15 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 15
(3)  (i) Aero­planes — Aero­engines 40 40
(ii)  Motor bus­es, motor lor­ries and motor taxis used in a busi­ness of run­ning them on hire 30 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  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  60 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 60 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 50 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 50 40
 (vii)  Moulds used in rub­ber and plas­tic goods fac­to­ries 30 30
(viii)  Air pol­lu­tion con­trol equip­ment, being—    
(a)  Elec­tro­sta­t­ic pre­cip­i­ta­tion sys­tems    
(b)  Felt-fil­ter sys­tems    
(c)  Dust col­lec­tor sys­tems 100 40
(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 40
(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 40
(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 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 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 40
(5)  Com­put­ers includ­ing com­put­er soft­ware 60 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 50 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 100 40
(8)  (i) Wood­en parts used in arti­fi­cial silk man­u­fac­tur­ing machin­ery 100 40
(ii)  Cin­e­mato­graph films — bulbs of stu­dio lights 100 40
(iii)  Match fac­to­ries — Wood­en match frames 100 40
(iv)  Mines and quar­ries :    
(a)  Tubs, wind­ing ropes, haulage ropes and sand stow­ing pipes 100  40
(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 40
(vi)  Flour mills – Rollers 80 40
(vii)  Iron and steel indus­try — Rolling mill rolls 80 40
(viii)  Sug­ar works – Rollers 80 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 80 40
(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 40
(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 40
(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 40
(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 40
(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 40
(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 40
(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 40
(xi)  Glass man­u­fac­tur­ing con­cerns — Direct fire glass melt­ing fur­naces 60 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 under­ground tanks and fit­tings used in field oper­a­tions (dis­tri­b­u­tion) by min­er­al oil con­cerns 60 40
(c)  Oil wells not cov­ered in claus­es (a) and (b) (with effect from the assess­ment year 2016–17) 15 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 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 40
(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 40
(b)  Books, oth­er than those cov­ered by entry (a) above 60 40
(ii)  Books owned by assessees car­ry­ing on busi­ness in run­ning lend­ing libraries 100 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 20
(2)  Ves­sels ordi­nar­i­ly oper­at­ing on inland waters, not cov­ered by sub-item (3) below 20 20
(3)  Ves­sels ordi­nar­i­ly oper­at­ing on inland waters being speed boats [See Note 10 below the Table] 20 20
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.

5A. Rate of depre­ci­a­tion shall be 40% if con­di­tions of Rule 5(2) are sat­is­fied.

5B. Applic­a­ble from the Assess­ment year 2004-05.

 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.

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