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Income Tax 1961, depreciation Rates

Income Tax 1961, depreciation Rates

All assets have been divided into four main categories and Income Tax depreciation 1961, Rates as prescribed by Rule 5(1) are given below:

PART A TANGIBLE ASSETS 

Income Tax 1961, depreciation Rates

I Buildings

S.NoParticularsdepreciation Rates
Block 1.Buildings (other than covered by sub-item (3) below) which areused mainly for residential purposes .5%
Block 2.Buildings which are not used mainly for residential purposes and not covered by sub-items (1) above and (3) below10%
Block 3.Buildings acquired on or after the 1st 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 sub-section (4) of section 80-IA100%
Block 4.Purely temporary erections such as wooden structures100%

II Furniture and Fittings

Income Tax 1961, depreciation Rates

Block 1.Furniture and fittings including electrical fittings10%

III Plant & Machinery

Income Tax 1961, depreciation Rates

S.NoParticularsdepreciation Rates
Block 1.Motors buses, motor lorries, motor taxis used in the business of running them on hire30%
Block 2.Aeroplanes, aeroengines40%
Block 3.Specified air, water pollution control equipments, solid waste control equipment and solid waste recycling and resource recovery systems100%
Block 4.Energy Saving Devices (as specified)80%
Block 5.Motor cars other than those used in a business of running them on hire, acquired or put to use on or after 1-4-1990.15%
Block 6.Computers including computer software60%
Block 7.Annual publications owned by assessees carrying on a profession100%
Block 8.Books owned by assessees carrying on business in running lending libraries100%
Block 9.Books, other than annual publications, owned by assessees carrying on a profession60%
Block 10.Plant & machinery (General rate)15%

IV Ships

S.NoParticularsdepreciation Rates
Block 1.Ocean-going ships20%
Block 2.Vessels ordinarily operating on inland waters not covered by sub-item (3) below20%
Block 3.Speed boats operating on inland water20%

PART B INTANGIBLE ASSETS

Income Tax 1961,  depreciation Rates

Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature 25%

Refer to Income-tax Rules, 1962 for the detailed classification of assets under Rule 5(1) and the rates applicable thereto.

Note

(1) New commercial vehicles acquired on or after 1.1.2009 but before 1.10.2009 and put to use before 1.10.2009 for the purposes of business or profession” would be classified under the head MACHINERY AND PLANT and would be eligible for depreciation at the rate of 50%.

(2) Windmills and any specially designed devices which run on windmills installed on or after 1.4.2014 would be eligible for depreciation@80%. Likewise, any special devices including electric generators and pumps running on wind energy installed on or after 1.4.2014 would be eligible for depreciation@80%. In respect of windmills and any specially designed devices running on windmills installed on or before 31.3.2014 and any special devices including electric generators and pumps running on wind energy installed on or before 31.3.2014, the rate of depreciation is 15%.

With regards,

Thank You

Income Tax 1961, depreciation Rates

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Income Tax 1961, depreciation Rates

Income Tax 1961, depreciation Rates

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