DEPRECIATION RATES UNDER INCOME TAX ACT (AY 2020-21 & Onwards)

Block of assets

Depreciation as % of written down value

PART A

TANGIBLE ASSETS

I.

BUILDING 

(1)

Buildings  used mainly for residential purposes (except hotels and boarding houses)

5

(2)

Buildings other than sub-items (1) (3) & (4)

10

(3)

Buildings acquired on or after 01.09.2002 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

40

(4)

Temporary erections such as wooden structures

40

1. Buildings include roads, bridges, culverts, wells and tube wells.
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 2/3rd of its total built-up floor area and shall include any such building in the factory premises.
3. Water treatment system includes system for desalination, demineralization and purification of water.

II.

FURNITURE AND FITTINGS

Furniture and fittings including electrical fittings

10

1. Electrical fittings include electrical wiring, switches, sockets, other fittings and fans, etc.

III.

MACHINERY AND PLANT:

Section-43(3) "plant" includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purposes of the business or profession but does not include tea bushes or livestock or buildings or furniture and fittings;

(1)

Plant & Machinery (General) other than item 2-8 below

15

(2)

(i) Motor cars )other than those used in a business of running them on hire) except those covered in (ii) below

(ii) Motor Cars, other than those used in a business of running them on hire, acquired on or after 23-08-2019 but before 01-04-2020 and is put to use before 01-04-2020

15

30

(3)

(i) Aeroplanes- Aeroengines

40

(ii)

1. Motor buses, motor lorries and motor taxis used in a business of running them on hire (Other than entry (b);

1. Motor buses, motor lorries and motor taxis used in a business of running them on hire acquired on or after 23-08-2019 but before 01-4-2020 and is put to use before 01-04-2020;

30

45

(iii)

Commercial vehicle acquired on or after 01-10-98 but before 01-04-99 and put to use 01-04-99 for the purpose of business & profession

40

(iv)

New commercial vehicle acquired on or after 01-01-98 but before 01-04-99 in replacement of condemned vehicle of over 15 years of age and put to use before 01-04-99 for business or profession

40

(v)

New commercial vehicle acquired on or after 01-04-99 but before 01-04-2000 in replacement of condemned vehicle of over 15 years of age and put to use before 01-04-2000 for business or profession

40

(vi)

New commercial vehicle acquired on or after 01-04-2001 but before 01-04-2002 and is put to use before 01-04-2002 for business or profession

40

(via)

New commercial vehicle acquired on or after 01-01-2009 but before 01-10-2009 and is put to use before the 01-10-2009 for business or profession

40

1. 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).

(vii)

Moulds used in rubber and plastic goods factories

30

(viii)

Air pollution control equipment

40

(ix)

Water pollution control equipment

40

(x)

Solid waste Control equipment or 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 SSI/LSI to 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

40

(4)

Containers made of glass or plastic used as re-fills

40

(5)

Computers including computer software

40

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

1. Depreciation on printer, scanner will also be charged at the rate as prescribed for computers as these form essential parts of PC. These output devices cannot work in isolation and also working on computer system without an output device such as printer would be futile. (ACIT v. Container Corporation of India, Delhi-ITAT ITA No. 2851 & 3680/Del/2007)

1. However, EPABX and mobile phones are not computers;

(6)

Machinery and plant, used in weaving processing and garment sector of textile industry, which is purchased under TUFS on or after 01-04-2001 and before 01-04-2004 and put to use before 01-04-2004

40

1. TUFS means Technology Upgradation Fund Scheme announced by the Government of India

(7)

Machinery and plant, acquired and installed on or after 01-09-2002 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

40

1. 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.

(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

        (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

(viii) Sugar works Rollers

(ix)   Energy saving devices being:

1. Specialised boilers and furnaces
2. Instrumentation and monitoring system for monitoring energy flows
3. Waste heat recovery equipment
4.  Co-generation systems
5. Electrical equipments:- Shunt capacitors, automatic power cut off devices, voltage controller, power factor controller, thermally energy efficient stenters, series compensation equioments, FACT devices, Tod energy meters, Remote terminal units, intelligent electronic devices, router, bridges, computer hardware and software associates therewith
6. Burners
7. Other equipment

(x) Gas cylinders including valves and regulators

(xi) Glass manufacturing concerns- Direct fire glass melting furnaces

(xii) Mineral oil concerns- Plant used in field operative and field operations

(xiic) Oil wells:                                                                              

(xiii) Renewal energy devices

Refer for detailed rates at:

https://www.incometaxindia.gov.in/Pages/charts-and-tables.aspx

40

15

40

(9) 

(i) Books owned by assessees carrying on a profession

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

40

IV.

Ships

20

 PART B

INTANGIBLE ASSETS

Know-how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature

25