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Depreciation rates as per Income Tax Act (For F.Y 2015-16 & 2016-17)


All provisions regarding Depreciation as per Income Tax Act – Section 32

Depreciation as per Income Tax Calculator

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 and air conditioners

10%

5. Plant & Machinery Motor car, motor cycle,bike, scooter other than those used in a business of running them on hire, Mobile phone

15%

6. Plant & Machinery Motor buses/taxies/lorries used in a business of running them on hire

30%

7. Plant & Machinery Computers, Laptops, computer software, Printer, Scanner, UPS and other peripheral devices (Related Case Law)

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 as per Income Tax Calculator

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 ]  
  (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 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 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.’

Source: Incometaxindia

100 comments

  1. Depreciation on Flat (Partnership firm)

  2. depreciation on CCTV AND DVR

  3. If one gives Batteries on rent to owners of vehicle/E Rickshaw as a business, will depreciation be allowed on batteries, if yes at what rate?

    • Prateek Agarwal

      Yes, depreciation will be allowed as you are using the assets for business purpose. No specific rate is given and thus common rate under plant and machinery of 15% will be applicable.

  4. WHAT IS THE RATE OF DEPRECIATION ON PRINTER FOR MORE THAN 180 DAYS & LESS THAN 180 DAYS?

    • Prateek Agarwal

      Rate of depreciation is same as that of computer i.e 60% for more than 180 days. For 180 days or less the rate gets divided by two, i.e it becomes 30%.

  5. Personal items such as mobile phone, car,bike, electronic items, invertor,ac, fridge these items liable to depreciation or not

    • Prateek Agarwal

      If they are used for business then they are liable for depreciation. If they are used for personal purpose then no depreciation can be claimed.

  6. SIR, WHAT IS THE USEFUL LIFE FOR FACTORY SHED

    • Prateek Agarwal

      As per income tax act useful life is not considered for calculating depreciation. A fixed rate is defined as per income tax act as mentioned above.

  7. what is the depreciation rate for Acoustic Room for sound.
    when the room is hired and the acoustic is the owner’s property / asset.

  8. PALLAB J. KALITA

    WHAT IS RATE OF DEPRECIATION ON ORIGINAL SOFTWARE LIKE WINDOWS , MAC … FCP etc. ?

  9. WHAT IS THE DEPRICIATION ON SOLAR SYSTEM

  10. Krishna Murthy V

    Hi Sir
    I Am Krishna Murthy V
    Sleep-well is Fixed Assets or Not ?

  11. Santosh Patlolla

    How to consider the depreciation cost on the following:

    a) Smart Phone
    b) Field Pad device
    c) Drone

    Is this vary from country to country such as India and US

    • Prateek Agarwal

      Depreciation rate is 15% for all three assets you mentioned.
      And depreciation rates may vary from country to country as they are decided by the income tax acts of the respective country.

  12. Depreciation on parking shed ?????

  13. ANUPAM ROYCHOWDHURY

    THANKS A LOT.MY NEXT REQUIRED: WHAT IS THE RATE OF DEPRECIATION OF FOOT BRIDGE(IN PARK)AS PER INCEOME TAX ACT(ASSESMENT YEAR 2016-17).

  14. ANUPAM ROYCHOWDHURY

    WHAT IS THE RATE OF DEPRECIATION OF WOODEN FENCING & DECK AS PER INCOME TAX TACT(ASSESMENT YEAR 2016-17)

    • Prateek Agarwal

      If wooden fencing is around your property then it can be considered as part of building and rate of depreciation as applied on building will be applicable.

  15. Depreciation rate for the battery used with invertor in office premises.

  16. Steel roller are eligible for 80% depreciation . can these assets come preview of additional depreciation.

  17. 1.What is the depreciation rate on Aircoditioner 2015-16
    2.What is the depreciation rate on ups for computer

  18. what is the rate of depreciation on office equipments?

  19. Shivangi Jaiswal

    what should be the depreciation rate for college building whose useful life is 100 years?

    • Prateek Agarwal

      For income tax purpose, the depreciation rate is as mentioned in the tables above irrespective of the useful life of asset.

  20. SONAM TOPGYAL

    wHAT IS THE RATE OF DEPRECIATION FOR BOREWELL AND WHERE IT IS TO BE GROUPED?

    • Rohit Pithisaria

      The rate of depreciation on borewell is 15% and it will grouped under Plant & Machinery.

  21. Can a company opt for different dep rates from income tax? If yes,then where it is mentioned in the act?

  22. What is depreciation of Godown for the assessment year 2016-2017

    • Prateek Agarwal

      Godown is considered as building itself and therefore depreciation rates as applicable to buildings are applicable i.e 5%.

  23. What is the Depreciation rate on Phone Box, Metal Almira & Water Pump ?

  24. SHAIFALI JAIN

    WHAT IS RATE OF DEPRECIATION ON PRINTER ?

  25. what is depreciation percentage for Refrigerator

  26. we have one care bal. cost is Rs. 500000 this car sale on Novemmber month of rs. 325000 then where calcutate the depreciation.

  27. HOW MANY DEPRECIATION CHARGES ON COMPUTER SOFTWARE?

  28. Himanshu Gupta

    What is the Depreciation rate on RO Purification system installed in plant ?

  29. MVS Nageswararao

    What is the depreciation for wind power generation plant from the year FY 2016-17 onwards.

  30. Darshana Shah

    What is the Depreciation Rate on Chargeable Batteries used for Lifts in a Co-operative Housing Society?

  31. what is the depreciation rate on camera and mobile phone?

  32. himanshu vaghela

    Depriciation rate of pharmaceuticals machinery Partnership firm under 6 months of purchase

    • Prateek Agarwal

      Depreciation rate is 15% for plant and machinery. No special rate is prescribed for pharmaceuticals industry. Depreciation rates as per income tax act is same for all type of assessees. If the asset is put to use for 180 days or more than full depreciation is levied otherwise half of the depreciation rate.

  33. PVS Suryanarayana

    What is the depreciation rate on Hostel & Dormitory buildingds provided to Home guards & CISF?

    • The depreciation rate should be 10%.

      • Please note
        If it is a part of any institution such as college, school etc then the depreciation rate should be 5%. If it is an open for all (such as hotel, guest house or boarding house) then the rate should be 10%.

  34. Depreciation of Genset in partnership firm in FY 2015-16

  35. what is the depreciation rate on office furniture?

  36. What is the depreciation rate for structural tubular scaffolding as per IT Act?

  37. what is the depreciation rate on television and photocopier machine?

  38. Professional person having furnitures used for profession-what will be the rate of depreciation?

    • Prateek Agarwal

      Rate of depreciation will be 10% for furniture whether used by professional or for business.

  39. how to charge depreciation on Solar Pv System in each year ? 80% in first year and entire 20% in the second year OR 80% depreciation in each year ?

  40. i want to know any changes depreciation rate between old machinery and new machinery.

    • Prateek Agarwal

      Depreciation rates is same for new machinery or old machinery.
      Although additional depreciation is not allowed on purchase of second hand machinery.

  41. NAGANAND KOTHA

    i want to know the depreciation rate for electrically operated vehicles like reva car.

    • Rohit Agarwal

      Depreciation rate is 80% for Electrically operated vehicles including battery powered or fuel-cell powered vehicles.

  42. we made a telefilm for advertisement, please let me know rate as per IT Act

  43. Mobile phone per dep kitna hi

  44. prashant gautam

    Dear Sir,
    I am trying to file ITR-6 and charge depreciation at SLM method as per Income Tax act, U/s 32 in case of power generation company, but there is no option of SLM method In ITR6 utility how can i do. this.

    prashant gautam

  45. printer or photo copy machine pe depreciation ki kya rate h????

  46. I need a over all view in this topic as iam preparing for civils would u pls give me a abstract!

  47. viresh hiremath

    Hello Sir,

    I have claimed the Depreciation for the FY-2013-14 But filed the Income Tax return After the due , so FY-2013-14 My Company was profit, but claimed in Depreciation allowable under section 32(1) (i) , but 143(1) intimation is came Demand raised so what about sir, Please clarify very urgently

  48. depreciation on fishing nets as per incometax act

    • Rohit Agarwal

      No specific depreciation rates is notified for fishing nets. So you can use general rate of 15% for depreciation under Income Tax Act

  49. I have some querries for depreciation coloume. please clarify the same?

    Thanks

    B.Sathyakumar

  50. Depreciation rate on Oxygen Cylinder for the F.Y. 2014-15.

  51. total detail rate as per company act

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