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 2018-19(AY 2019-20) as amended by Finance Act,2018. Rate comparison is provided between AYs 2003-04 to 2005-06, AY 2006-07 to AY 2017-18,AY 2018-19 on wards .It is provided for below mention assets with different rates of depreciation .
- Building
- Furniture
- Plant and Machinery (P&M)
- Ships
- 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,2018.
Depreciation Rate Chart as per Income Tax Act
| Asset Class | Block Number | Sub item Number | Asset Type | Rate of Depreciation AYs 2003-04 to 2005-06 | Rate of Depreciation AY 2006-07 to AY 2017-18 | Rate of Depreciation AY 2018-19 onwards |
|---|---|---|---|---|---|---|
| Building | Block-01 | i. | Residential buildings except hotels and boarding houses | 005% | 005% | 005% |
| Building | Block-02 | ii. | Other than Residential buildings (not covered in Block No.1 &3) | 010% | 010% | 010% |
| Building | Block-03 | i. | 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% | 100% | 040% |
| Building | Block-03 | ii. | Purely temporary erections such as wooden structures | 100% | 100% | 040% |
| Furniture | Block-04 | i. | Furniture - Any furniture / fittings including electricals fittings | 015% | 010% | 010% |
| Plant & Machinery | Block-05 | i. | Motor cars other than those used in a business of running them on hire | 020% | 015% | 015% |
| Plant & Machinery | Block-05 | ii. | P&M other those covered in block no. 6 to 11 below. | 025% | 015% | 015% |
| Plant & Machinery | Block-06 | i. | Motor buses/taxies/lorries used in a business of running them on hire | 040% | 030% | 030% |
| Plant & Machinery | Block-06 | ii. | Moulds used in rubber and plastic goods factories | 040% | 030% | 030% |
| Plant & Machinery | Block-06 | iii. | P&M used in semi conductor industry other than those covered in Block no. 11 below | 040% | 030% | 030% |
| Plant & Machinery | Block-07 | i. | Aeroplanes - Aeroengines | 040% | 040% | 040% |
| Plant & Machinery | Block-07 | ii. | 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% | 040% | 040% |
| Plant & Machinery | Block-07 | iii. | 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] (k) Ventilators other than those used with anaesthesia (l) Gamma knife | 040% | 040% | 040% |
| Plant & Machinery | Block-08 | i. | 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% | 040% | 040% |
| Plant & Machinery | Block-08 | ii. | 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% | 050% |
| Plant & Machinery | Block-08 | iii. | Containers made of glass or plastic used as re-fills | 050% | 050% | 040% |
| Plant & Machinery | Block-08 | iv. | 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 | 050% | 050% | 050% |
| Plant & Machinery | Block-09 | i. | Computers including computer software | 060% | 060% | 040% |
| Plant & Machinery | Block-09 | ii. | Books owned by professional (other than annual publications; or books owned by assesses carrying on business in running lending libraries) | 060% | 060% | 040% |
| Plant & Machinery | Block-09 | iii. | Gas cylinder,valves and regulators. Glass manufacturing concerns - 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. | 080% | 060% | 040% |
| Plant & Machinery | Block-09 | iv. | Oil wells not covered in above clauses (with effect from the assessment year 2016-17) | - | 015% | 015% |
| Plant & Machinery | Block-09 | v. | 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% | 060% | 040% |
| Plant & Machinery | Block-09 | vi. | 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% | 060% | 040% |
| Plant & Machinery | Block-10 | i. | 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% | 080% | 040% |
| Plant & Machinery | Block-11 | i. | 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 infrastructure facility u/s 80-IA(4)(i). | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | ii. | Wooden parts used in artificial silk manufacturing machinery | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | iii. | Cinematograph films- bulbs of studio lights. | 100% | 100% | 100% |
| Plant & Machinery | Block-11 | iv. | Mach factories-wooden match frames. | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | v. | Windnig ropes,Tubes, haulage ropes and sand stowing pipes, and safety lamps used in mines and quarries | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | vi. | Salt works-Salt pans, resrvoirs and condensers , etc. made of earthy,sandy or clayey material or any other similar material | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | vii. | Books owned by assesses carrying on a profession , being annual publications. | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | viii. | Books owned by assessees carrying on business in running lending libraries. | 100% | 100% | 040% |
| Plant & Machinery | Block-11 | ix. | Water pollution,Air Pollution control equipment, control equipment, solid waste control equipment, solid waste recycling and resource recovery systems. | 100% | 100% | 040% |
| Ships | Block-12 | i. | Ocean going ships | 025% | 020% | 020% |
| Ships | Block-12 | ii. | Vessels ordinarily operating on inland waters, not covered in below items | 025% | 020% | 020% |
| Ships | Block-12 | iii. | Vessels ordinarily operating on inland waters being speed boats. | 025% | 020% | 020% |
| Intangible Assets | Block-13 | i. | Know-how, patents, copyrights,trademarks, licences, franchisees or any other business or commercial rights of similar nature. | 025% | 025% | 025% |
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 1 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 assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
- “Computer software” means any computer program 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 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.]
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 40% however if you want to know rates for “Solar-photovoltaic modules and panels for water pumping and other applications “then rates is also 40% 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. For better view , full screen post is provided .Hope you will like it!
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(Note: Original post amended with changes)
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