Rates of Depreciation

Revision of the rates of depreciation for the year financial year 18-19 has been subject to praise and criticisms equally. While companies having depreciation rates of 100, 80, 60, 50 have been given relaxation in a broad sense, they have to pay higher tax to the higher amount of income after depreciation. Based on the overall 'spirit' of the notification(revision of rates of depreciation), the intention seems to restrict depreciation only in respect of companies covered by Sec 115BA.

The rates of depreciation cover four main heads of tangible assets and a different fifth head of intangible assets.






Block of assets

  

Depreciation allowance as percentage of written down value

 

  

AYs 2003-04 to 2005-06

AY 2006-07 to AY 2017-18

AY 2018-19  onwards

1

  

2

3

4

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

5

5

(2)  Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below

  

10

10

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 infra- structure facilities under clause (i) of sub-section (4) ofsection 80-IA

  

100

100

40

(4)  Purely temporary erections such as wooden structures

  

100

100

40

II. FURNITURE AND FITTINGS

  

 

 

 

Furniture and fittings including electrical fittings [See Note 5 below the Table]

  

15

10

10

III. MACHINERY AND PLANT

  

 

 

 

(1)   Machinery and plant other than those covered by sub-items (2), (3) and (8) below : [See Note 5A below the Table]

  

25

15

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

  

20

15

15

(3)  (i) Aeroplanes - Aeroengines

  

40

40

40

(ii)  Motor buses, motor lorries and motor taxis used in a business of running them on hire

  

40

30

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

40

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 [SeeNote 6 below the Table]

  

60

60

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]

  

60

60

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]

  

50

50

40

(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]

  

50

40

 (vii)  Moulds used in rubber and plastic goods factories

  

40

30

30

(viii)  Air pollution control equipment, being—

  

 

 

 

(a)  Electrostatic precipitation systems

  

 

 

 

(b)  Felt-filter systems

  

 

 

 

(c)  Dust collector systems

  

100

100

40

(d)  Scrubber-counter current/venturi/packed bed/cyclonic scrubbers

  

 

 

 

(e)  Ash handling system and evacuation system

  

 

 

 

(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

  

100

100

40

(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

 

 

 

 
      

 (x) (a) Solidwaste control equipments being - caustic/lime/chrome/mineral/cryolite recovery systems

  

100

100

40

(b)  Solidwaste recycling and resource recovery systems

  

(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

  

40

30

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 [See Note 5B]

  

40

40

40

(k)  Ventilators 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, Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope, Fibreoptic Flexible Oesophago Gastroscope

  

 

 

 

(o)  Laparoscope (single incision)

 

 

 

 

(4)  Containers made of glass or plastic used as re-fills

  

50

50

40

(5)  Computers including computer software [See note 7 below the Table]

  

60

60

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]

  

50

50

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]

  

100

100

40

(8)  (i) Wooden parts used in artificial silk manufacturing machinery

  

100

100

40

(ii)  Cinematograph films - bulbs of studio lights

  

100

100

40

(iii)  Match factories - Wooden match frames

  

100

100

40

(iv)  Mines and quarries :

  

 

 

 

(a)  Tubs, winding ropes, haulage ropes and sand stowing pipes

  

100 

100 

40

(b)  Safety lamps

  

(v)  Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material

  

100

100

40

(vi)  Flour mills - Rollers

  

80

80

40

(vii)  Iron and steel industry - Rolling mill rolls

  

80

80

40

(viii)  Sugar works - Rollers

  

80

80

40

(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

  

80

80

40

(d)  High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers)

 

 

 

 

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

  

80

80

40

(e)  Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters

  

 

 

 

(f)  Maximum demand indicator and clamp on power meters

  

 

 

 

(g)  Exhaust gases analyser

  

 

 

 

(h)  Fuel oil pump test bench

 

 

 

 

C. Waste heat recovery equipment:

  

 

 

 

(a)  Economisers and feed water heaters

 

 

 

 

(b)  Recuperators and air pre-heaters

  

80

80

40

(c)  Heat pumps

  

 

 

 

(d)  Thermal energy wheel for high and low temperature waste heat recovery

  

 

 

 

D. Co-generation systems:

  

 

 

 

(a)  Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers

  

80

80

40

(b)  Vapour absorption refrigeration systems

  

 

 

 

(c)  Organic rankine cycle power systems

  

 

 

 

(d)  Low inlet pressure small steam turbines

  

 

 

 

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

  

80

80

40

(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)

 

 

 

 

F. Burners:

  

 

 

 

(a)  0 to 10 per cent excess air burners

  

 

 

 

(b)  Emulsion burners

  

80

80

40

(c)  Burners using air with high pre-heat temperature (above 300°C)

 

 

 

 

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

  

80

80

40

(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

 

 

 

 

(x) Gas cylinders including valves and regulators

  

80

60

40

(xi)  Glass manufacturing concerns - Direct fire glass melting furnaces

  

80

60

40

(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 underground tanks and fittings used in field operations (distribution) by mineral oil concerns

  

80

60

40

(c)  Oil wells not covered in clauses (a) and (b) (with effect from the assessment year 2016-17)

  -1515

(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 driers 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

  

80

80

40

(l)  Windmills and any specially designed devices which run on wind-mills installed on or before March 31, 2012

  

 

 

 

(m)  Any special devices including electric generators and pumps running on wind energy installed on or before March 31, 2012

  

 

 

 

(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

  

 

 

 

(9)  (i) Books owned by assessees carrying on a profession—

  

 

 

 

(a)  Books, being annual publications

  

100

100

40

(b)  Books, other than those covered by entry (a) above

  

60

60

40

(ii)  Books owned by assessees carrying on business in running lending libraries

  

100

100

40

IV. SHIPS

  

 

 

 

(1)  Ocean-going ships including dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with wooden hull

  

25

20

20

(2)  Vessels ordinarily operating on inland waters, not covered by sub-item (3) below

  

25

20

20

(3)  Vessels ordinarily operating on inland waters being speed boats [See Note 10 below the Table]

  

25

20

20

PART B

  

 

 

 

INTANGIBLE ASSETS

  

 

 

 

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

  

25

25

25



Increase in collection of personal income tax indicates more people and businesses are in the tax net than earlier. Finance minister Arun Jaitley

seconded this view in a blog post published on Friday. "Increase in the amount of collections in category of personal income tax is also due to more people coming within the tax net," he wrote. 

It also means that Indians are spending more and consuming more goods and services than earlier.


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