Depreciation under section 32 allowed as percentage of Written Down Value (WDV) (excluding Power Generating Units where depreciation allowed as per straight line method). Below Depreciation Chart applicable from Assessment Year 2018-19 and updated time to time with respective Finance Acts.
For easily find Rate Use Search Funtionality.
| Asset Class | Sr. No. | Asset Type | Rate of Depreciation |
|---|---|---|---|
| Building | 1 | Buildings used primarily for residential reasons except hotels and boarding houses | 5% |
| Building | 2 | Buildings other than used for residential reasons and not covered by subitems 1 (above) and 3 (below) | 10% |
| Building | 3 | Buildings purchased on or after September 1, 2002, for installing plant and machinery which is part of water treatment system or water supply project and which is used for the purpose of business of providing infrastructure facilities under clause (i) of subsection (4) of section 80-IA | 40% |
| Building | 4 | Purely temporary erections/structure i.e. wooden structures | 40% |
| Building | * Building includes roads, bridges, culverts, wells and tubewells | ||
| Furniture and fittings | Furniture and fittings including electrical fittings i.e. electrical wiring, switches, sockets, other fittings and fans, etc. | 10% | |
| Plant and machinery | 1 | Plant and machinery excluding those covered by sub-items (2), (3) and (8) below | 15% |
| Plant and machinery | 2(i) | Motor cars, excluding those used in a business of running them on hire, procured or put to use on or after April 1, 1990 except covered in 2(ii) (below) | 15% |
| Plant and machinery | 2(ii) | Motor cars, other than those used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020. | 30% |
| Plant and machinery | 3(i) | Aeroplanes, Aero Engines | 40% |
| Plant and machinery | 3(ii) | (a) Motor taxis, motor buses and motor lorries used in a business of running them on hire | 30% |
| Plant and machinery | 3(ii) | (b) Motor buses, motor lorries and motor taxis used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020. | 45% |
| Plant and machinery | 3(iii) | Commercial vehicle which is procured by the assessee on or after October 1, 1998, but before April 1, 1999, and is used for any period of time prior to April 1, 1999, for the purpose of profession or business in agreement with the third proviso to clause (ii) of sub-section (1) of section 32 | 40% |
| Plant and machinery | 3(iv) | New commercial vehicle procured on or after October 1, 1998, but prior to April 1, 1999, in replacement of condemned vehicle of more than 15 years of age and is used for any period of time prior to April 1, 1999, for the purpose of business or profession in agreement with the third proviso to clause (ii) of sub-section (1) of section 32 | 40% |
| Plant and machinery | 3(v) | New commercial vehicle procured on or after April 1, 1999, but before April 1, 2000, in replacement of condemned vehicle of more than 15 years of age and is put to use prior to April 1, 2000, for the purposes of profession or business in agreement with the second proviso to clause (ii) of sub-section (1) of section 32 | 40% |
| Plant and machinery | 3(vi) | New commercial vehicle procured on or after April 1, 2001, but before April 1, 2002, and is put to use before April 1, 2002, for the purpose of profession or business | 40% |
| Plant and machinery | 3(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] | 40% |
| Plant and machinery | 3(vii) | Moulds used in plastic and rubber goods factories | 30% |
| Plant and machinery | 3(viii) | Air pollution control equipment being Felt-filer system, Electrostatic precipitation systems, ScrubberCounter current / packed bed / venture / cyclonic scrubbers, Dust collector systems, Evacuation system and ash handling system | 40% |
| Plant and machinery | 3(ix) | Water pollution control equipment, Aerated detritus chambers (including air compressor), Mechanical screen systems, Mechanically skimmed grease and oil removal systems, Flash mixing equipment and chemical feed systems, Mechanical reactors and mechanical flocculators, Mechanically aerated activated sludge / diffused air systems, Biofilters, Aerated lagoon systems, Air floatation systems, Methane, recovery anaerobic digester systems, Steam/air stripping systems, Marine outfall systems, Urea Hydrolysis systems, Activated carbon column, Bio, Disc or rotating biological contractor, Marine outfall systems, Ion exchange resin column, Centrifuge for dewatering sludge | 40% |
| Plant and machinery | 3(x) | (a) Solid waste, control equipment Cryolite / mineral / lime / caustic / chrome recovery system (b) Resource recovery and solid waste recycling systems | 40% |
| Plant and machinery | 3(xi) | Plant and machinery used in semiconductor industry covering all integrated circuits (ICs) (not including hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration / very large scale integration (LSI/VLSI) as also discrete semiconductor devices like diodes, triacs, thyristors, transistors, etc., except those covered by entries (viii), (ix), (x) of this sub-item and sub-item (8) below | 30% |
| Plant and machinery | 3(xi)a | Life Saving medical equipment, D.C Defibrillators for pacemakers and internal use, Colour Doppler, Haemodialysis, Cobalt therapy unit, Vascular Angiography System including Digital subtraction Angiography, Heart lung machine, Spect Gamma Camera, Magnetic Resonance Imaging System, Ventilator used with anaesthesia apparatus, Ventilator except those used with anaesthesia, Surgical laser, Gamma knife, Fibreoptic endoscopes including audit resectoscope/paediatric resectoscope, arthoscope, peritoneoscopes, fibreoptic flexible nasal pharyngo, microaryngoscope, video laryngo, fiberoptic flexible laryngo bronchoscope., Bronchoscope, video oescophago gastroscope, video oescopghago bronchoscope, fibreoptic flexible oesophago gastroscope | 40% |
| Plant and machinery | 4 | Containers made of plastic or glass used as refills | 40% |
| Plant and machinery | 5 | Computers including computer software, Printers, Scanners etc. | 40% |
| Plant and machinery | 6 | Plant and machinery, used in processing, weaving and garment sector of textile industry, which is bought under TUFS on or after April 1, 2001, but prior to April 1, 2004, and is put to use prior to April 1, 2004 | 40% |
| Plant and machinery | 7 | Plant and machinery procured and installed on or after September 1, 2002, in a water treatment system or a water supply project and put to use for the purpose of business of providing infrastructure facility under clause (i) of sub-section (4) of section 80-IA | 40% |
| Plant and machinery | 8.1 | 1. Wooden parts used in artificial silk manufacturing machinery | 40% |
| Plant and machinery | 8.2 | 2. Match factories, wooden match frames | 40% |
| Plant and machinery | 8.3 | 3. Cinematograph films, bulbs of studio lights | 40% |
| Plant and machinery | 8.4 | 4. Salt works, condensers, reservoirs, salt pans, etc., made of clayey, sandy or earthy material or any other similar material | 40% |
| Plant and machinery | 8.5 | 5. Quarries and mines: Sand stowing pipes, winding ropes, tubs and haulage ropes, Safety Lamps | 40% |
| Plant and machinery | 8.6 | 6. Flour mills, rollers | 40% |
| Plant and machinery | 8.7 | 7. Sugar works, rollers | 40% |
| Plant and machinery | 8.8 | 8. Steel and iron industry, rolling mill rolls | 40% |
| Plant and machinery | 8.9 | 9. Energy saving devices : | |
| Plant and machinery | 8.9.A | (A) Furnaces and specialised boilers: (i) Fluidized bed boilers / ignifluid, (ii) Continuous pusher type furnaces and flameless furnaces, (iii) High efficiency boilers, (iv) Fluidized bed type heat treatment | 40% |
| Plant and machinery | 8.9.B | (B) Instrumentation and monitoring system for monitoring energy flows: (i) Digital heat loss meters, (ii) Automatic electrical load monitoring systems, (iii) Infrared thermography, (iv) Microprocessor based control systems, (v) Meters for measuring heat losses, steam flow, furnace oil flow, power factor and electric energy meters, (vi) Exhaust gas analysers, (vii) Maximum demand indicator and clamp on power meters, (viii) Fuel oil pump test bench | 40% |
| Plant and machinery | 8.9.C | (C) Waste heat recovery equipment: (i) Air pre-heaters and recuperators, (ii) Feed water heaters and economisers, (iii) Thermal energy wheel for low and high temperature heat recovery, (iv) Heat pumps | 40% |
| Plant and machinery | 8.9.D | (D) Co-generation systems: (i) Controlled extraction, back pressure pass out, extraction cum condensing turbines for cogeneration along with pressure boilers, (ii) Organic rankine cycle power systems, (iii) Vapour absorption refrigeration systems, (iv) Low inlet pressure small steam turbines | 40% |
| Plant and machinery | 8.9.E | (E) Electrical equipment: (i) Synchronous condenser systems and shunt capacitors, (ii) Relays (automatic power cut off devices), (iii) Power factor controller for AC motors, (iv) Automatic voltage controller, (v) Solid state devices for controlling motor speeds, (vi) FACT (Flexible AC Transmission) devices, Thyristor controlled series compensation equipment, (vii) Thermally energy-efficient stenters, (viii) Series compensation equipment, (ix) TOD (Time of Day) energy meters, (x) Intelligent electronic devices/remote terminal units, computer software/hardware, bridges/router, other required equipment and associated communication systems for data acquisition systems and supervisory control, distribution management systems and energy management systems for power transmission systems, (xi) Special energy meters for ABT (Availability Based Tariff) | 40% |
| Plant and machinery | 8.9.F | (F) Burners: (i) Zero to ten per cent excess air burners, (ii) Burners using air with high preheat temperature (above 300 degrees Celsius), (iii) Emulsion burners | 40% |
| Plant and machinery | 8.9.G | (G) Other equipment: (i) Mechanical vapour recompressors, (ii) Wet air oxidation equipment for recovery of heat and chemicals, (iii) Automatic microprocessor based load demand controllers, (iv) Thin film evaporators, (v) Fluid couplings and fluid drives, (vi) Coal based producer gas plants, (vii) Super-charges/turbo charges, (viii) Sealed radiation sources for radiation processing plants | 40% |
| Plant and machinery | 8.10 | Gas cylinders including regulators and valves | 40% |
| Plant and machinery | 8.11 | Glass manufacturing concerns, Direct fire glass melting furnaces | 40% |
| Plant and machinery | 8.12 | Mineral oil concerns | |
| Plant and machinery | 8.12.i | (i) Plant used in field operations (above ground) distribution, returnable packages | 40% |
| Plant and machinery | 8.12.ii | (ii) Plant used in field operations (below ground), but not including kerbside pumps including fittings and tanks used in field operations (distribution) by mineral oil concerns | 40% |
| Plant and machinery | 8.12.iii | (iii) Oil wells not covered in (i) and (ii) above | 15% |
| Plant and machinery | 8.13 | Renewable energy devices: (i) Pipe type and concentrating solar collectors, (ii) Flat plate solar collectors, (iii) Solar cookers, (iv) Air/fluid/gas heating systems, (v) Solar water heaters and systems, (vi) Solar crop drivers and systems, (vii) Solar steels and desalination systems, (viii) Solar refrigeration, air conditioning systems and cold storages, (ix) Solar pumps based on solar-photovoltaic and solar-thermal conversion, (x) Solar power generating systems, (xi) Solar-photovoltaic panels and modules for water pumping and other applications, (xii) Windmills and any specially designed devices which run on wind-mills installed on or before March 31, 2012, (xiii) Any special devices including electric generators and pumps running on wind energy installed on or before March 31, 2012, (ixv) Biogas plant and biogas engines, (xv) Electrically operated vehicles including battery powered or fuel-cell powered vehicles, (xvi) Agricultural and municipal waste conversion devices producing energy, (xvii) Equipment for utilising ocean waste and thermal energy, (xviii) Machinery and plant used in the manufacture of any of the above sub-items | 40% |
| Plant and machinery | 9 | Books owned by assessees carrying on a A. profession - (i) Books, being annual publications, (ii) Books, excluding those covered by entry (i) above, B. Books owned by assessees carrying on business in running lending libraries | 40% |
| Ships | 1 | Ocean-going ships including tugs, survey launches, dredgers, barges and other similar ships used primarily for dredging purposes and sighing vessels with wooden hull | 20% |
| Ships | 2 | Vessels ordinarily operating on inland waters, not covered by sub-item (iii) below | 20% |
| Ships | 3 | Vessels ordinarily operating on inland waters being speed boats | 20% |
| Intangible Assets | Franchise, trademark, patents, license, copyright, know-how or other commercial or business rights of similar nature excluding Goodwill | 25% |
Conditions Before Claiming Depreciation
- The assets must be own, wholly or partly, by the Assessee.
- The assets must be use for the business or profession of the taxpayer.
- If the assets are not used exclusively for the business, but for other use (Personal) as well, depreciation only allowable to the proportionate to the use of business purpose.
- Co-owners can also claim depreciation to the extent of the value of the assets own by each co-owner.
- You can’t claim depreciation on cost of land as well as on Goodwill generated in business.
- Depreciation is mandatory and shall allowed or deemed to be allowed as a deduction irrespective of a claim made by a taxpayer in the profit & loss account.
- Depreciation under the Companies Act, 2013 is different from that of Income Tax Act, 1961. Therefore, depreciation rates prescribed under the Income Tax Act are allowed irrespective of the depreciation rates charged in the books of accounts as per other law.
Act also allow an Addition Depreciation @ 20% in the year of Purchase in certain circumstances.
Sources
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