Depreciation Rate Chart as per Income Tax Act

Assets are bifurcated in five classes for the purpose of Depreciation as per Income Act .Below mention Depreciation Rate Chart as per Income Tax Act are applicable for the FY 2017-18(AY 2018-19) as amended by Finance Act,2017. It is provided for below mention assets with different rates of depreciation .

  1. Building
  2. Furniture
  3. Plant and Machinery (P&M)
  4. Ships
  5. Intangible assets

Block of Assets:

There is a concept of block of assets. Blocks of assets are defined based on rates of depreciation of respective block. There are total 13 different rates of depreciation hence there are total 13 Blocks of assets. Below mention charts are updated as per Finance Act,2017.

Depreciation Rate Chart as per Income Tax Act

Asset ClassBlock NumberSub item NumberAsset TypeRate of Depreciation
BuildingBlock-01i.Residential buildings except hotels and boarding houses005%
BuildingBlock-02ii.Other than Residential buildings (not covered in Block No.1 &3)010%
BuildingBlock-03i.Buiding acquired on or after 01st Sep,2002 for installing P&M forming part of water supply project or water treatment systmen and which is put to use for the prupose of business of providing infrasturcture facilities u/s 80-IA(4)(i)100%
BuildingBlock-03ii.Purely temporary erections such as wooden structures100%
Furniture  Block-04i.Furniture - Any furniture / fittings including electricals fittings010%
Plant & MachineryBlock-05i.Motor cars other than thouse used in a business of running them on hire015%
Plant & MachineryBlock-05ii.P&M other those  covered in block no. 6 to 11 below.015%
Plant & MachineryBlock-06i.Motor buses/taxies/lorries used in a business of running them on hire030%
Plant & MachineryBlock-06ii.Moulds used in plastic and rubber factories030%
Plant & MachineryBlock-06iii.P&M used in semi conductor industry other than those covered in Block no. 11 below030%
Plant & MachineryBlock-07i.Aeroplanes-Aeroengies040%
Plant & MachineryBlock-07ii.Commerical vehicle acquired on or after 01st Oct,1998 but before 01st Apr,1999 and is put to used before 01st Apr,1999 for purpose of Business or Profession (B or P)040%
Plant & MachineryBlock-07iii.Sepcified life saving medical equipment040%
Plant & MachineryBlock-08i.New commerical vehicle acquired/purchased on or after 01st Apr 2001 but before 01st Apr,2002 and put to use before 01st Apr,2002 for (B or P)050%
Plant & MachineryBlock-08ii.New commercial vehicle acquired/purchased on or after 01st Jan,2009 but before 01st Oct,2009 and put to use before 01st Oct,2009 for (B or P)050%
Plant & MachineryBlock-08iii.Glass or Plastic containers used as re-fills050%
Plant & MachineryBlock-08iv.P&M used in weaving , processing and garment sector of textile industry purchased under TUFS on or after 01st Apr,2001 but before 01st Apr,2004 and put to use before 01st Apr,2004050%
Plant & MachineryBlock-09i.Computers and computer software060%
Plant & MachineryBlock-09ii.Books owned by professional (other than annual publications  or books owned by assesses carrying on business in running lending libraries)060%
Plant & MachineryBlock-09iii.Gas cylinder,valves and regulators. Direct fire glass melting furnaces, Plant used in filed operations distribution above/below ground but not include kerbside pumps & underground tanks and fittings used in field operations (distribution) by mineral oil concerns.060%
Plant & MachineryBlock-09iv.New commercial vehicle which is acquired on or after the 01.10.1998 but before the 01.04.1999 in replacement of condemned vehicle of over 15 years of age and is put to use for any period before the 01.04.1999for the purposes of business or profession in accordance with the third proviso to Section 32(1)(ii) 060%
Plant & MachineryBlock-09v.New commercial vehicle which is acquired on or after the 01.04.1999 but before the 01.04.2000 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 Section 32(1)(ii) 060%
Plant & MachineryBlock-10i.Energy saving ( Specialised boilers and furnaces,Instrumentation and monitoring system for monitoring energy flows,Waste heat recovery equipment,Co-generation systems,Electrical equipment,Burners,Other equipment) and renewal energy devices,Rollers used in flour mills and sugar works, Rolling mill rolls used in iron and steel industry.080%
Plant & MachineryBlock-11i.P&M  acquired and installed on or after 01st Sep,2002 in water supply project or a water treatment system and put to use for the purpose of business of providing infrasturcture facility u/s 80-IA(4)(i).100%
Plant & MachineryBlock-11ii.Wooden parts used in artificial silk manufacturing machinery100%
Plant & MachineryBlock-11iii.Cinematograph films- bulbs of studio lights.100%
Plant & MachineryBlock-11iv.Mach factories-wooden match frames.100%
Plant & MachineryBlock-11v.Windnig ropes,Tubes, haulage ropes and sand stowing pipes, and safety lamps used in mines and quarries100%
Plant & MachineryBlock-11vi.Salt works-Salt pans, resrvoirs and condensers , etc. made of earthy,sandy or clayey material or any other similar material100%
Plant & MachineryBlock-11vii.Books owned by assesses carrying on a profession , being annual publications.100%
Plant & MachineryBlock-11viii.Books owned by assessees carrying on business in running lending libraries.100%
Plant & MachineryBlock-11ix.Water pollution,Air Pollution control equipment, control equipment, solid waste control equipment, solid waste recycling and resource recovery systems.100%
ShipsBlock-12i.Ocean going ships020%
ShipsBlock-12ii.Vessels ordinarily operating on inland waters, not covered in below items020%
ShipsBlock-12iii.Vessels ordinarily operating on inland waters being speed boats.020%
Intangible AssetsBlock-13i.Know-how, patents, copyrights,trademarks, licences, franchisees or any other business or commercial rights of similar nature.025%

 

Notes:

  1. “Buildings” include roads, bridges, culverts, wells and tubewells.
  2. “Computer software” means any computer programme recorded on any disc, tape, perforated media or other information storage device.

There is an attempt to provide ready reference rates for depreciation based on group of assets (Specifically in P&M). In case you need rates for a specific asset or in case of any doubt , please refer Section 32 of Income Tax Act,1961 or takes professional advice. e.g. Renewal Energy devices rates are provided as 80% however if you want to know rates for “Solar-photovoltaic modules and panels for water pumping and other applications “then rates is 80% which is cover under Renewal Energy devices.

How to use above Depreciation Rate Chart as per Income Tax Act :

Above table is very user-friendly and provide better navigation. You can search assets in search box e.g. “furniture”, you will get depreciation rate of furniture. You can decide to show 10, 25,50 or 100 rows at a time. You can take print out or take PDF version by selecting 100 rows (for all entries) and clicking on respective option which is available at the end of post. You can sort table. Hope you will like it!

Please give your valuable feedback in comment section , if you like Depreciation Rate Chart as per Income Tax Act .

(Note: Original post amended with changes)

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