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Depreciation Rates for Income Tax

Income Tax Depreciation Rates for various assets viz. Building Residential, Factory, Plant and Machinery, Motor Car, Buses, Lorries, Computer and software, Furniture, Patents applicable with effect from AY 2006-07.

	Asset	Dep. allowance as percentage of written down value
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
(2)	Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below	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) of section 80-IA	100
(4)	Purely temporary erections such as wooden structures	100
II. Furniture and Fittings
Furniture and fittings including electrical fittings [See Note 5 below the Table]		10

III. Machinery and Plant
(1)	Machinery and plant other than those covered by sub-items (2), (3) and (8) below :		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		15
(3)	(i)	Aeroplanes - Aeroengines	40
	(ii)	Motor buses, motor lorries and motor taxis used in a business of running them on hire	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
	(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]	60
	(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
	(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
	(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
	(vii)	Moulds used in rubber and plastic goods factories	30
	(viii)	Specified* Air pollution control equipment	100
	(ix)	Specified* Water pollution control equipment	100
	(x)	Specified* Solid waste control equipments	100
	(xi)	Specified* Machinery and plant, used in semi-conductor industry	30
	(xia)	Specified* Life saving medical equipment	40
(4)	Containers made of glass or plastic used as re-fills		50
(5)	Computers including computer software [See note 7 below the Table]		60
(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
(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
(8)	(i)	Wooden parts used in artificial silk manufacturing machinery	100
	(ii)	Cinematograph films - bulbs of studio lights	100
	(iii)	Match factories - Wooden match frames	100
	(iv)	Mines and quarries : (a) Tubs, winding ropes, haulage ropes and sand stowing pipes (b) Safety lamps	100
	(v)	Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clay material or any other similar material	100
	(vi)	Flour mills - Rollers	80
	(vii)	Iron and steel industry - Rolling mill rolls	80
	(viii)	Sugar works - Rollers	80
	(ix)	Specified* Energy saving devices	80
	(x)	Gas cylinders including valves and regulators	60
	(xi)	Glass manufacturing concerns - Direct fire glass melting furnaces	60
	(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	60
	(xiii)	Specified* Renewal energy devices	80
9	(i)	(i) Books owned by assessees carrying on a profession - (a) Books, being annual publications	100
	(i)	(b) Books, other than those covered by entry (a) above	60
	(ii)	Books owned by assessees carrying on business in running lending libraries	100
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		20
(2)	Vessels ordinarily operating on inland waters, not covered by sub-item (3) below		20
(3)	Vessels ordinarily operating on inland waters being speed boats [See Note 10 below the Table]		20
PART B - INTANGIBLE ASSETS
Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature			25

* For Specified items under the sub-head, please refer Appendix I to the Income Tax Rules, 1962.

Notes:

"Buildings" include roads, bridges, culverts, wells and tubewells.
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.
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.
Water treatment system includes system for desalination, demineralisation and purification of water.
"Electrical fittings" include electrical wiring, switches, sockets, other fittings and fans, etc.
"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 as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
"Computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device.
"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.
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.
"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.

Updated : Mar 08, 2021

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