Depreciation rates as per I.T Act for most commonly used assets

Table of Contents

Confused in complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

Rates has been changed for financial year 2017-18 and onwards. Now the maximum rate of depreciation is 40%.

S No.Asset ClassAsset TypeRate of Depreciation
    1.BuildingResidential buildings except hotels and boarding houses5%
2.BuildingHotels and boarding houses10%
3.BuildingPurely temporary erections such as wooden structures40%
4.FurnitureFurniture – Any furniture / fittings including electrical fittings and air conditioners10%
5.Plant & MachineryMotor car, motor cycle, bike, scooter other than those used in a business of running them on hire, Mobile phone15%
5.Plant & MachineryMotor car, motor cycle, bike, scooter 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%
6.Plant & MachineryMotor buses/taxies/lorries used in a business of running them on hire30%
6.Plant & MachineryMotor buses/taxies/lorries 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%
7.Plant & MachineryComputers, Laptops, computer software, Printer, Scanner, UPS and other peripheral devices40%
8.Plant & MachineryBooks owned by assessee, carrying on profession being annual publications40%  
9.Plant & MachineryBooks owned by assessee, carrying on profession not being annual publications40%
10.Plant & MachineryBooks owned by assessee, carrying on business in running lending libraries40%
11.Intangible AssetsKnow how, patents, copyright, trademark, license, franchise or any other business or commercial rights of similar nature25%

You can use our depreciation calculator

Also Read –

Depreciation – Meaning, Methods and Calculation

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

Depreciation rates as per I.T Act – Comprehensive Table

S No.Asset ClassAsset TypeRate of Depreciation
PART ATANGIBLE ASSETS
  I. Building[See Notes 1 to 4 below the Table ] 
 (1) Buildings which are used mainly for residential purposes except hotels and boarding houses5%
 (2) Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below10%
 (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-IA40%
 (4) Purely temporary erections such as wooden structures40%
     
II. Furniture & FittingsFurniture and fittings including electrical fittings See Note 5 below the Table10%
     
III. Machinery & Plant  
  1)Machinery and plant other than those covered by sub-items (2), (3) and (8) below15%
  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, 199015%
  3)(i) Aeroplanes – Aeroengines40%
   (ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire30%
   (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]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 [ See Note 6 below the Table ]
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 [ See Note 6 below the Table ]40%
   (vii) Moulds used in rubber and plastic goods factories30%
   (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 system40%
   (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
40%
   (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-fills40%
  5)Computers including computer software [ See note 7 below the Table ]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
[ See Note 8 below the Table ]
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 [ See Notes 4 and 9 below the Table]40%
  8)(i) Wooden parts used in artificial silk manufacturing machinery40%
   (ii) Cinematograph films – bulbs of studio lights40%
   (iii) Match factories – Wooden match frames40%
   (iv) Mines and quarries:(a) Tubs, winding ropes, haulage ropes and sand stowing pipes
(b) Safety lamps
40%
   (v) Salt works – Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material40%
   (vi) Flour mills – Rollers40%
   (vii) Iron and steel industry – Rolling mill rolls40%
   (viii) Sugar works – Rollers40%
   (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)
40%
   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
40%
   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
40%
   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
40%
   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)
40%
   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)
40%
   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
40%
   (x) Gas cylinders including valves and regulators40%
   (xi) Glass manufacturing concerns – Direct fire glass melting furnaces40%
   (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
40%
   (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.
40%
   i) Books owned by assessees carrying on a profession –
(a) Books, being annual publications
40%
   (b) Books, other than those covered by entry (a) above40%
   ii) Books owned by assessees carrying on business in running lending libraries40%
IV.1)ShipsOcean-going ships including dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with wooden hull20%
 2) Vessels ordinarily operating on inland waters, not covered by sub-item (3) below20%
 3) Vessels ordinarily operating on inland waters being speed boats [ See Note 10 below the Table]20%
PART BINTANGIBLE ASSETS
   Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature25%

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.’

Confused about complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

Read More Articles

senior citizen's benefit in income tax
Income Tax
Rohit Pithisaria

6 Benefits in Income Tax for Senior Citizens

A number of benefits are given in the Income Tax Act of India to the senior citizens apart from general deductions and benefits. Senior citizen is a resident individual who is of 60 years or more at any time during

Read Article »

How to check the TDS credit in your account

How to Check TDS Credit Step 1 – Go to https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html   Step 2 – Enter the login details. If you haven’t registered you PAN number then you can register yourself via https://incometaxindiaefiling.gov.in/e-Filing/Registration/RegistrationHome.html Step 3 – Once you successfully logged

Read Article »

How to pay income tax online

Step 1 – Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp Step 2 – Select Challan No./ITNS 280 Step 3 – Select the type of assessee for which income tax payment being made. If you are making payment for a company then you should select (0020) Income

Read Article »

Subscribe

We will send updates relating to Income Tax only

(No spam, you can unsubscribe anytime)