1/26/12 Rates of Depreciation as Per Income Tax Act for A.Y.

2010-11
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Home Income Tax Rates of Depreciation as Per Income Tax Act for A.Y. 2010-11
Rates of Depreciation as Per Income Ta Act for
A.Y. 2010-11
Wednesday, July 14, 2010, 8:43
Income Tax
Articles, Featured
8,845 views
Block of Assets :-The expressions Assets and Blocks of Assets w.e.f. 1-4-1999 shall mean a group of assets falling
within a class of assets comprising:
1. Tangible Assets being buildings, machiner, plant or furniture;
1/26/12 Rates of Depreciation as Per Income Tax Act for A.Y. 2010-11
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2. Intangible Assets being know how, patents, copyrights, trademarks, licences, franchises or any other business or
commercial rights of similar nature; in respect of which same
percentage of depreciation is prescribed.
Rates of Depreciation (Applicable w.e.f. A.Y. 2006-07
II Rates of Depreciation (Applicable w.e.f.
A.Y. 2006-07, Refer Notification No. 67/2005
dt. 28th February, 2005 w.e.f. 2-4-2005)
RATE %
I Buildings : (See Note 2)
1 Buildings which are used mainly for residential purposes except hotels
and Boarding House
5
2 Buildings which are not used mainly for residential purposes and other
than mentioned in 1 & 3
10
3 Buildings acquired on or after 1-9-2002 for installing P & M forming
part of water supply project or ater treatment system and put to
use for the purpose of providing infrastructure facilities u/s. 80-IA(4)
(i)
100
4 Purely temporary erections such as wooden structures. 100
II Furniture and fittings including elecical fiing 10
III Machiner and plant : (See Note 3)
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 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 taxies
used in a business of running them on hire.
30
iii. Commercial ehicle 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
vi.a) New commercial vehicle acquired on or after 1-1-2009 but 50
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before 1-4-2009 and put to use before 1-4-2009 for the
business or profession
vii. Moulds used in rubber and plastic goods factories 30
viii. Air pollution control equipments 100
ix. Water pollution control equipments 100
x. Solid waste control equipments 100
xi. P & M used in semi-conductor industry 30
xi.a) Life saving medical equipments
(For Items refer to Rule 5 App. I)
40
4 Containers made of glass or plastic used as refills 50
5 Computers (including computer software) 60
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&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
a. Annual publication 100
b. Other books 60
ii. Books owned by assessees carrying on business in running
lending libraries
100
IV Ship
Refer to Rule-5 App.-I 20
V Inangible Ae
Knowhow, patents, copyrights, trademarks, licences, franchises or
any other business or commercial rights of similar nature acquired on
or after 1.4.1998.
25
NOTES :
1. Where an asset is put to use for less than 180 days in a previous year in which it is purchased, depreciation thereon
shall be allowed at 50% of the depreciation allowable in respect of the block of asset comprising such asset.
2. Buildings include roads, bridges, culverts, wells and tubewells
3. Plant has been held to include:
movable partitions [Jarrold vs. John Good & Sons Ltd., 40 TC 681 (CA)]
sanitary & pipeline fitting [CIT vs. Taj Mahal Hotel, 82 ITR 44 (SC)]
ceiling and pedestal fans [CIT vs. Jagadees Chandran & Co., 75 ITR 697 (Mad.); Sundaram Motors Pvt.
Ltd. vs. CIT, 71 ITR 587 (Mad.); CIT vs. Tarun Commercial Ltd., 151 ITR 75 (Guj)].
wells [CIT vs. Warner Hindustan Ltd., 117 ITR 15 (AP)].
hospital [CIT vs. Dr. B. Venkata Rao 111 Taman 635 (SC)]. However, w.e.f. A.Y. 2004-05, it shall not
include buildings, furniture and fittings.
4. Depreciation on assets acquired on hire purchase basis should be allowed to the hirer where the terms of the
agreement provide that the equipment shall eventually become the property of the hirer or confer on the hirer an option
to purchase the equipment [Circular No. 9 (R. Dis. No. 27(4) - IT/43), dated 23-3-1943].
5. Depreciation in respect of motor car manufactured outside India acquired on or after 28-2-1975 or before 1-4-2001
shall be allowed.
6. The claim of depreciation is mandatory w.e.f. A. Y. 2002-03 overriding Supreme Courts decision in CIT vs.
Mahendra Mills 109 Taman 225 which held that the depreciation claim is optional.
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7. Total depreciation allowable in the year of succession/ amalgamation/demerger, to predecessor/amalgamating/
demerged co. and successor/amalgamated/resulting co. is to be restricted to depreciation allowable as if succession/
amalgamation/demerger had not taken place, and such depreciation is to be apportioned on the basis of number of days
usage by each of them.
8. Depreciation is allowable even on jointly owned assets.
9. No amortisation benefits u/ss. 35A and 35AB can be claimed in respect of intangible assets.
10. In respect of depreciable assets employed in power projects, depreciation may be computed under the Straight
Line Method on indiidal assets [Rule 5(1A)] [Appendix IA]. Alternatively, the undertaking, may at its option, also
claim depreciation at the normal rates (Rule 5(1) Appendix I), subject to the option being exercised prior to the due
date of filing the return of income. In the event of sale or disposal of such assets, if the sale consideration.
i. is less than WDV of such assets Balance (i.e., WDV sale consideration) can be claimed as
depreciation, provided that such a deficiency is written off in the books.
ii. is in excess of the WDV Excess (to the extent of the difference between actual cost and WDV will be
taxable as Business profit and the balance as Capital Gains)
11. Additional Depreciation @ 20% of actual cost of new machinery or plant (other than ships and aircrafts) acquired
and installed after 31st March, 2005 by an assessee engaged in the business of manufacture or production of an article
or thing shall be allowed on satisfying certain conditions.
Tags: Buildings, Furniture and fittings, income tax act, Machinery and plant, Rates of Depreciation

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Dhii
KN.MUTHIAH e 18 Seebe, 2010, 13:50
Widi ae eigibe f Acceeaed deeciai a 80%.Pee if a ge geeai baed iceie
ae eigibe cai acceeaed deeciai.
I hi iai ha i he a ae f deeciai aabe f WINDMILLS.
Kid gie adice ad I i be haf.
Ua e 22 Seebe, 2010, 17:44
P ed e fa i ece hee f deeciai cacai ad h cacae
Shaddha Ra e 23 Ocbe, 2010, 19:33
Peae if e he a iabiiie f he aface f LED dc hee b he be i abe ae
e b e ha 60%.
e ASAP.
Ai Shaa e 18 Nebe, 2010, 12:03
Si
I hae a aege cg a i a ha h i deiciai ae i.
Tha
Ai Shaa e 18 Nebe, 2010, 12:04
Dea i
P ed e fa i ece hee f deeciai cacai ad h cacae
Tha
Ai Shaa e 18 Nebe, 2010, 12:05
Dea Si
Peae ed e .f cacai hee i ece fa.
Tha
PANKAJ KR NIMESH e 4 Decebe, 2010, 12:20
HOW DECIDE THAT RATE OF DEPRICIATION (COMPUTER DEP. 60%)
bhaa e 21 Decebe, 2010, 13:59
ca e e ceig fa i ce de fie i ffice eie.e he ae f de .
id e 21 Decebe, 2010, 16:04
eae ed deiciai ece fa i
ah e 22 Decebe, 2010, 17:18
1/26/12 Rates of Depreciation as Per Income Tax Act for A.Y. 2010-11
6/11 taxguru.in//rates-of-depreciation-as-per-income-tax-act-for-a-y-2010-11
please send me all fixassets depriciation rate for assessment year 2010-2011
Rohit Kumar wrote on 4 January, 2011, 16:00
Pls send me format in excel sheet for depreciation calculation and how to calculate
MANISH wrote on 22 January, 2011, 12:51
wht rate of depriciation be charged on library books in case of college or trust?
malathesh wrote on 5 February, 2011, 14:37
Dear Sir,
Please reply me about the rate of depreciation on new factory building & plant & machinery under partnership
act, extensionof unit,
thanking you,
with regards
n.k.malathesh
Purvi wrote on 14 February, 2011, 18:11
Dear Sir,
At the time of Sell of any Fixed Asset we have to take depriciated value as pe Cos act or as per Imcome tax
act?
Is there any accounting practice that we have to maintain depriciation as per cos act as well as as per income
tax.
Kindly suggest.
Thanks & Regards.
rama wrote on 15 February, 2011, 12:29
what is the benefit of accelerated dep for a new biomass power company.
what is its effect on tariff if any.
vipin wrote on 29 March, 2011, 17:27
in case of schools what will be the depreciation rate for sports items and books and periodicals for the A.Y.
2010-11
Chandan Chaudhary wrote on 8 April, 2011, 12:06
please send the formula of calculate interest of RD Monthly Deposit
k kalirajan wrote on 11 April, 2011, 10:01
Im K.Kalirajan from Trichirapalli, Tamil nadu . Interested to instaingl Solar Air conditioner for my home. When I
refer internet, benefit of income tax thro 100% depreciation is shown by some companies.. Is it for individual
also?
Kindly clarify, if i install solar A/c for my home, am I eligible to claim this benefit?
Sudarshan Kale wrote on 12 April, 2011, 16:00
please send depriciation excel format sir (A Y 2011-12)
1/26/12 Rates of Depreciation as Per Income Tax Act for A.Y. 2010-11
7/11 taxguru.in//rates-of-depreciation-as-per-income-tax-act-for-a-y-2010-11
Shraddha wrote on 16 April, 2011, 13:34
Please conIirm the rate oI depreciation Ior Plant & Machinery used in manuIacture oI Solar Panel. Is it 80
k nand kishore wrote on 22 April, 2011, 18:35
I learnt some where in books relating to Taxation in India that in case the value oI depreciable asset is Rs. 5000
or less depreciation can be claimed 100 regardless oI the category oI the depreciable asset. Can any one
give a detailed clariIication on this particular aspect oI depreciation ?
pavithra wrote on 29 April, 2011, 12:18
Please replay me the rare oI depreciation on star one hair in yellow board
vilas gondal wrote on 12 May, 2011, 11:36
What is the highest rate oI Depreciation under Income Tax and Ior what items?
please give chart
srinivasa reddy wrote on 13 May, 2011, 14:13
ur question not clear!, what star one hair?
Abhijit roy wrote on 19 May, 2011, 12:23
Please tell me the rate oI depreciation oI computer , as we know the depreciation rate is 33.33.
Vivek Sharma wrote on 30 June, 2011, 19:31
The depreciation on computers as per Income Tax Act, 1961 is 60 under WDV method
Vivek Sharma wrote on 30 June, 2011, 19:32
Highest rate oI depreciation is 100 Ior temporary wooden structure
Vivek Sharma wrote on 30 June, 2011, 21:27
II library is being used Ior business and proIession, then 60 depreciation can be claimed . In case oI periodicals
100 depreciation can be used.
dinesh wrote on 15 July, 2011, 13:02
depreciation rate as per income tax law on Iire Iighting equipments
ajay rai wrote on 20 July, 2011, 15:33
tractors/spares ka vat percentage kya hai.
ajay rai wrote on 20 July, 2011, 15:36
sir,
plz send vat Iorm 24 and vat charge on tractors.
mansi wrote on 20 July, 2011, 22:05
iI i am a sports proIessional:
1/26/12 Rates of Depreciation as Per Income Tax Act for A.Y. 2010-11
8/11 taxguru.in//rates-of-depreciation-as-per-income-tax-act-for-a-y-2010-11
a. Which return would i use ITR 4?
b. my sports equipments would be classified as assets
c. what rate of depreciation would apply on same
NEERAJ UPPAL wrote on 11 September, 2011, 14:53
Please send me rates of depreciation for the Financila Year 2010-11 & All rates of VAT & VAT 24 Form
Thanking You
NEERAJ UPPAL
GURDASPUR
Purnachandra Prasad wrote on 13 September, 2011, 17:31
Can we claim depreciation for a lease hold land ?
Please reply
Thanks
Prasad
kumar wrote on 17 September, 2011, 9:58
Refer,
Your state Biomass tariff schedule given by the concerned Renewable Dept.There you will get the details of
Accelerated Depreciation information.
Md Mobarak Hussain wrote on 19 October, 2011, 22:15
Dear sir ,
pls explain me how to calculate the depreciation .
and pls explain what is the difference between IT Depreciation & Company Act Depreciation and which is
better..
pls reply soon
shree wrote on 27 October, 2011, 15:46
how to calculate the actual amount of fixed assets, actual balance sheet amount is 1,50,000/- i dont know 10 %
how it calculate i want actual 10 % depreciation amount please suggest me sir
Dipak Mehta wrote on 14 November, 2011, 15:18
shall i know from which year the rate of depreciation changed from 33.33% to 25% on plant and machinery?
please consider my request.
Dipak Mehta wrote on 14 November, 2011, 15:25
Dear Sir, shall i kknow from which year the rate of depreciation changed from 33.33% to 25% on plant &
machinary? please consider my request.Thank You.
Arun wrote on 17 November, 2011, 20:28
Yes. It is allowed at 100% provided the cost of aquisition of the asset is not more the Rs.5,000/-
Preetam Singh wrote on 25 November, 2011, 15:10
1/26/12 Rates of Depreciation as Per Income Tax Act for A.Y. 2010-11
9/11 taxguru.in//rates-of-depreciation-as-per-income-tax-act-for-a-y-2010-11
hi Sir/Mem
I Want To understand the depreciation So plz sir Some knowledge provide me.
SACHIN NALAWADE wrote on 10 December, 2011, 17:36
Respected Sir /Madam
I Want to required all details of those assets are applicable or not applicable for Depreciation(with Current Rate)
b senapati wrote on 18 December, 2011, 16:38
Sir,
My company purchased a car on 4/2/2005 which is being used by me for Rs 324431\- . What will be its
depreciation value as per Income tax rules as on 04/02/2008?
Can you send the reply?
Thanks,
Anjali Devraj wrote on 23 December, 2011, 13:29
i need the depreciation rate according to income tax act and companies act in excel sheet on every assets and
how to calculate to it
Abhay Yadav wrote on 16 January, 2012, 14:31
What would be the depreciation rate to be taken in the case of books owned by college.
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