RATES OF DEPRECIATION

(%)

(I)

Buildings:

(a) Buildings which are used mainly for residential purposes except hotels and Boarding House

5

(b) Buildings which are not used mainly for residential purposes and other than mentioned in a & c

10

(c) Buildings acquired on or after 1-9-2002 for installing P & M forming part of water supply project or water treatment system and put to use for the purpose of providing infrastructure facilities u/s. 80- IA(4)(i)

100

(d) Purely temporary erections such as wooden structures

100

Note

• "Buildings" include roads, bridges, culverts, wells and tube wells.

• 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-thirds per cent of its total built-up floor area and shall include any such buildings in the factory premises.

• Water treatment system includes system for desalination, demineralisation and purification of water.

(II)

Furniture and fittings including electrical fittings

10

• Electrical fittings include electrical wiring, switches, sockets, other fitting and fans, etc

(III)

Machinery and plant:

Plant has been held to include :

• movable partitions

• sanitary & pipeline fitting

• ceiling and pedestal fans

• wells

• hospital

However, w.e.f. A.Y. 2004-05, it shall not include buildings, furniture and fittings.

1) Machinery & plant other than those covered by sub-items 2, 3 and 8 below

15

• 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.

2) Motor-cars (other than those used in business of running them on hire) acquired or put to use on 
or after 1st April, 1990

15
 

3) (i) Aeroplane-Aeroengines

40

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

30

(iii) Commercial vehicle acquired on or after 1-10-1998 but before 1-4-1999 and is put to use before 1-4-1999 for the purposes of business or profession.

40

(iv) New commercial vehicle acquired on or after 1-10-1998 but before 1-4-1999 and is put to use before 1-4-1999 in replacement of condemned vehicle of over 15 years of age for the purpose of business or profession.

60

(v) New commercial vehicle acquired on or after 1-4-1999 but before 1-4-2000 in replacement of condemned vehicle of over 15 years of age and is put to use before 1-4-2000 for the purpose of business or profession.

60

(vi) New commercial vehicles acquired on or after 1-4-2001 but before 1-4-2002 and is put to use before 1-4-2002 for the purpose of business or profession.

50

(vii) New Commercial vehicle acquired on or after 1-1-2009 but before 1-10-2009 and put to use before 1-10-2009 for the purpose of business or profession

50

• "Commercial vehicle" means — heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle, medium passenger motor vehicle.

• It does not include "maxi-cab", "motor-cab", "tractor" and "road-roller".

(viii) Moulds used in rubber and plastic goods factories

30

(ix) Air pollution control equipments

100

(x) Water pollution control equipments

100

(xi) Solid waste control equipments

100

(xii) P & M used in semi-conductor industry

30

(xiii) Life saving medical equipments

40

4) Containers made of glass or plastic used as refills

50

5) Computers (including computer software)

60

• "Computer Software" means any computer programme recorded on any disc, tape, perforated media or other information storage device.

6) Machinery and plants used in weaving, processing and garment sector of textile industry purchased under TUFS on or after 1-4-2001 but before 1-4-2004 and is put to use before 1-4-2004

50

7) Machinery and plant, acquired and installed on or after the 1-9-2002 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 80-ia(4)(i)

100

8) For other items of P & M refer to Rule 5 App. 1

100/80/60

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

— Annual publications

100

— Other books

60

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

100

(IV)

Ships

20

• "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.

(V)

Intangible Assets

25

Know-how patents, copyrights, trademarks, licenves, franchises or any other business or commercial rights of similar nature acquired on or after 1-4-1998.