Depreciation Rates Under Income Tax Act

Most Common Used Asset Depreciation Rates

Sr.No.Asset ClassAsset TypeDepreciation Rates
1BuildingResidential buildings except hotels and boarding houses5%
2BuildingBoarding houses and hotels10%
3BuildingPurely temporary constructions like wooden structures40%
4FurnitureAny fittings / furniture including electrical fittings10%
5Plant and machineryMotor cars excluding those used in a business of running them on hire15%
6Plant and machineryMotor cars excluding those used in a business of running them on hire purchased on or after 23 August 2019 but before the 1 April 2020 and is put to use before 1 April 202030%
7Plant and machineryLorries/taxis/motor buses used in a business of running them on hire30%
8Plant and machineryLorries/taxis/motor buses used in a business of running them on hire purchased on or after 23 August 2019 but before the 1 April 2020 and is put to use before 1 April 202045%
9Plant and machineryPlant and machinery40%
10Plant and machinery Books owned by assessee carrying on a profession being annual publications100%
11Plant and machineryBooks owned by assessee carrying on profession not being annual publications60%
12Plant and machineryBooks owned by assessee carrying on business in running lending libraries100%
13Intangible assetsFranchise, trademark, patents, license, copyright, know-how or other commercial or business rights of similar nature25%

Depreciation Rates as Per Income Tax Act

This depreciation table is application from A.Y.2018-19 onwards.

Asset ClassSr.No.Asset NameDepreciation Rate
Building1Buildings which are used mainly for residential purposes except hotels and boarding houses5%
2Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below10%
3Buildings 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-IA40%
4 Purely temporary erections such as wooden structures40%
Furniture and Fitting1 Furniture and fittings including electrical fittings10%
Machinery and Plant1Machinery and plant other than those covered by sub-items (2), (3) and (8) below 15%
2Motor cars, excluding those used in a business of running them on hire, procured or put to use on or after April 1, 199015%
3Motor 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%
3(i) Aeroplanes - Aeroengines40%
3(ii)(a) Motor buses, motor lorries and motor taxis used in a business of running them on hire other than those covered under entry30%
(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%
3(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 3240%
3(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 3240%
3(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 3240%
3(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 40%
3(vii)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 profession30%
3(viii)Moulds used in plastic and rubber goods factories40%
Air pollution control equipment
Felt-filer system
Electrostatic precipitation systems
Scrubber
Counter current / packed bed / venture / cyclonic scrubbers
Dust collector systems
Evacuation system and ash handling system
3(ix)Water pollution control equipment, being—40%
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
3(x)(a) Solid waste, control equipment Cryolite / mineral / lime / caustic / chrome recovery system (b) Resource recovery and solid waste recycling systems40%
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) below30%
3(xi)aLife Saving medical equipment40%
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
4Containers made of plastic or glass used as refills40%
5Computers including computer software40%
6Plant 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, 200440%
7Plant 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-IA40%
81. Wooden parts used in artificial silk manufacturing machinery40%
2. Match factories, wooden match frames40%
3. Cinematograph films, bulbs of studio lights40%
4. Salt works, condensers, reservoirs, salt pans, etc., made of clayey, sandy or earthy material or any other similar material40%
5. Quarries and mines
Sand stowing pipes, winding ropes, tubs and haulage ropes
Safety lamps
40%
6. Flour mills, rollers40%
7. Sugar works, rollers40%
8. Steel and iron industry, rolling mill rolls40%
9. Energy saving devices
(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 treatment40%
(B) Instrumentation and monitoring system for monitoring energy flows
(i) Digital heat loss meters
(ii) Automatic electrical load monitoring systems
(iii) Infrared thermography40%
(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
(C) Waste heat recovery equipment
(i) Air pre-heaters and recuperators40%
(ii) Feed water heaters and economisers
(iii) Thermal energy wheel for low and high temperature heat recovery
(iv) Heat pumps
(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
(E) Electrical equipment
(i) Synchronous condenser systems and shunt capacitors40%
(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 equipment40%
(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)
(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 burners40%
(G) Other equipment
(i) Mechanical vapour recompressors
(ii) Wet air oxidation equipment for recovery of heat and chemicals
(iii) Automatic microprocessor based load demand controllers40%
(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
10. Gas cylinders including regulators and valves40%
11. Glass manufacturing concerns, Direct fire glass melting furnaces40%
12. Mineral oil concerns40%
(i) Plant used in field operations (above ground) distribution, returnable packages
(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
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
40%
14. Wind mills and any other specially designed devices that operate on wind mills (installed on or after April 1, 2014)
15. Any special devices including electric pumps and generators operating on wind energy (installed on or after April 1, 2014)
16. Books owned by assessees carrying on a profession
(i) Books, being annual publications
(ii) Books, excluding those covered by entry (i) above
(iii) Books owned by assessees carrying on business in running lending libraries
40%
Ships4(i) Ocean-going ships including tugs, survey launches, dredgers, barges and other similar ships used primarily for dredging purposes and sighing vessels with wooden hull20%
4(ii)Vessels ordinarily operating on inland waters, not covered by sub-item (iii) below20%
4(iii)Vessels ordinarily operating on inland waters being speed boats20%

Notes :

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 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 1 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, demineralization 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 road roller shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

7. Computer software means any computer program 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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