Depreciation Rate Chart as Per Income Tax (For FY 2019-20)

Depreciation rates as per Income Tax Act (For F.Y 2017-18 & 2018-19). Depreciation Rate Chart As Per Income Tax Act. Download Depreciation Rate Chart as per Income Tax Act. depreciation rate chart as per income tax for 2018-19. Latest New Depreciation Rates issued by Income Tax Department.  There are many queries regarding Depreciation rate chart like – depreciation rate in income tax, depreciation under income tax act etc. Now You can Scroll Down Below and check complete details regarding Latest Depreciation Rate As Per Income Tax Act. Recently we are Providing Depreciation Rate Chart As Per Companies Act 2013Procedure for Online E- Registration of Service Tax, Income Tax Due Dates You can also Find these Best Articles in Our Website. Now You can Scroll Down Blow and Download Depreciation Rate Chart As Per Income Tax Act.

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What Is Depreciation

While computing profits and gains from business or profession, a taxpayer can claim depreciation on all those assets which he has acquired and used for the purpose of his business or profession. Different depreciation rates are prescribed for different nature of assets. This write up lists down all such depreciation rates.

Calculation of Depreciation

Depreciation is Calculated as per the provisions of income tax act for income tax return and companies are calculated as per companies act. So Depreciation is calculated by two method one is as per companies act or one is as per income tax act. Today we provide depreciation chart as per income tax act for easily calculate depreciation.

Depreciation Rate Chart As Per Income Tax

As per Income Tax Act 1962 Depreciation calculation is mandatory. So All firms who furnish return to income tax return calculate depreciation as per income tax act

Depreciation rates as per I.T Act for most commonly used assets

Sl.No Asset

Class

Asset Type Rate of Depreciation
1 Building Residential buildings not including boarding houses and hotels 5%
2 Building Boarding houses and hotels 10%
3 Building Purely temporary constructions like wooden structures 100%
4 Furniture Any fittings / furniture including electrical fittings 10%
5 Plant and machinery Motor cars excluding those used in a business of running them on hire 15%
6 Plant and machinery Motor cars excluding those used in a business of running them on hire purchased on or after 23 August 2019 but before the 1 April 2020 and is put to use before 1 April 2020 30%
7 Plant and machinery Lorries/taxis/motor buses used in a business of running them on hire 30%
8 Plant and machinery Lorries/taxis/motor buses used in a business of running them on hire purchased on or after 23 August 2019 but before the 1 April 2020 and is put to use before 1 April 2020 45%
9 Plant and machinery Computers and computer software 40%
10 Plant and machinery Books owned by assessee carrying on a profession being annual publications 100%
11 Plant and machinery Books owned by assessee carrying on profession not being annual publications 60%
12 Plant and machinery Books owned by assessee carrying on business in running lending libraries 100%
13 Intangible assets Franchise, trademark, patents, license, copyright, know-how or other commercial or business rights of similar nature 25%

6. Depreciation Rates as per the Income Tax Act

 

Part A Tangible Assets:

Asset Class Sl.No Asset Type Rate of Depreciation
Building 1 Buildings used primarily for residential reasons (excluding boarding houses and hotels) 5%
2 Buildings apart from those used primarily for residential reasons and not covered by subitems 1 (above) and 3 (below) 100%
3 Buildings procured on or after September 1, 2002, for installing plant and machinery forming part of water treatment system or water supply project and which is used for the purpose of business of providing infrastructure facilities under clause (i) of subsection (4) of section 80-IA 100%
4 Purely temporary erections like wooden structures 100%
Furniture and fittings Furniture and fittings including electrical fittings 10%
Plant and machinery 1 Plant and machinery excluding those covered by sub-items (2), (3) and (8) below 15%
2 Motor cars, excluding those used in a business of running them on hire, procured or put to use on or after April 1, 1990 15%
3(i) Aeroplanes, Aero Engines 40%
3(ii) Motor taxis, motor buses and motor lorries used in a business of running them on hire 30%
3(iii) Commercial vehicle which is procured by the assessee on or after October 1, 1998, but before April 1, 1999, and is used for any period of time prior to April 1, 1999, for the purpose of profession or business in agreement with the third proviso to clause (ii) of sub-section (1) of section 32 40%
3(iv) New commercial vehicle procured on or after October 1, 1998, but prior to April 1, 1999, in replacement of condemned vehicle of more than 15 years of age and is used for any period of time prior to April 1, 1999, for the purpose of profession or business in agreement with the third proviso to clause (ii) of sub-section (1) of section 32 60%
3(v) New commercial vehicle procured on or after April 1, 1999, but before April 1, 2000, in replacement of condemned vehicle of more than 15 years of age and is put to use prior to April 1, 2000, for the purposes of profession or business in agreement with the second proviso to clause (ii) of sub-section (1) of section 32 60%
3(vi) New commercial vehicle procured on or after April 1, 2001, but before April 1, 2002, and is put to use before April 1, 2002, for the purpose of profession or business 50%
3(vii) Moulds used in plastic and rubber goods factories 30%
3(viii) Air pollution control equipment

  • Felt
  • filter system
  • Electrostatic precipitation systems
  • Scrubber
  • Counter current / packed bed / venture / cyclonic scrubbers
  • Dust collector systems
  • Evacuation system and ash handling system
100%
3(ix) Water pollution control equipment

  • Aerated detritus chambers (including air compressor)
  • Mechanical screen systems
  • Mechanically skimmed grease and oil removal systems
  • Flash mixing equipment and chemical feed systems
  • Mechanical reactors and mechanical flocculators
  • Mechanically aerated activated sludge / diffused air systems
  • Biofilters
  • Aerated lagoon systems
  • Air floatation systems
  • Methane
  • recovery anaerobic digester systems
  • Steam/air stripping systems
  • Marine outfall systems
  • Urea Hydrolysis systems
  • Activated carbon column
  • Bio
  • Disc or rotating biological contractor
  • Marine outfall systems
  • Ion exchange resin column
  • Centrifuge for dewatering sludge
30%
3(x) (a) Solid waste, control equipment Cryolite / mineral / lime / caustic / chrome recovery system (b) Resource recovery and solid waste recycling systems 100%
3(xi) Plant and machinery used in semiconductor industry covering all integrated circuits (ICs) (not including hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration / very large scale integration (LSI/VLSI) as also discrete semiconductor devices like diodes, triacs, thyristors, transistors, etc., except those covered by entries (viii), (ix), (x) of this sub-item and sub-item (8) below 30%
3(xi)a Life Saving medical equipment

  • D.C Defibrillators for pacemakers and internal use
  • Colour Doppler
  • Haemodialysis
  • Cobalt therapy unit
  • Vascular Angiography System including Digital subtraction Angiography
  • Heart lung machine
  • Spect Gamma Camera
  • Magnetic Resonance Imaging System
  • Ventilator used with anaesthesia apparatus
  • Ventilator except those used with anaesthesia
  • Surgical laser
  • Gamma knife
  • Fibreoptic endoscopes including audit resectoscope/paediatric resectoscope, arthoscope, peritoneoscopes, fibreoptic flexible nasal pharyngo, microaryngoscope, video laryngo, fiberoptic flexible laryngo bronchoscope.
  • Bronchoscope, video oescophago gastroscope, video oescopghago bronchoscope, fibreoptic flexible oesophago gastroscope
40%
4 Containers made of plastic or glass used as refills 50%
5 Computers including computer software 60%
6 Plant and machinery, used in processing, weaving and garment sector of textile industry, which is bought under TUFS on or after April 1, 2001, but prior to April 1, 2004, and is put to use prior to April 1, 2004 50%
7 Plant and machinery procured and installed on or after September 1, 2002, in a water treatment system or a water supply project and put to use for the purpose of business of providing infrastructure facility under clause (i) of sub-section (4) of section 80-IA 100%
8 1. Wooden parts used in artificial silk manufacturing machinery 100%
2. Match factories, wooden match frames
3. Cinematograph films, bulbs of studio lights 100%
4. Salt works, condensers, reservoirs, salt pans, etc., made of clayey, sandy or earthy material or any other similar material 100%
5. Quarries and mines 100%
Sand stowing pipes, winding ropes, tubs and haulage ropes
Safety lamps
6. Flour mills, rollers
7. Sugar works, rollers 80%
8. Steel and iron industry, rolling mill rolls 80%
9. Energy saving devices 80%
(A) Furnaces and specialised boilers
(i) Fluidized bed boilers / ignifluid 80%
(ii) Continuous pusher type furnaces and flameless furnaces
(iii) High efficiency boilers
(iv) Fluidized bed type heat treatment
(B) Instrumentation and monitoring system for monitoring energy flows 80%
(i) Digital heat loss meters
(ii) Automatic electrical load monitoring systems
(iii) Infrared thermography
(iv) Microprocessor based control systems
(v) Meters for measuring heat losses, steam flow, furnace oil flow, power factor and electric energy meters
(vi) Exhaust gas analysers
(vii) Maximum demand indicator and clamp on power meters
(viii) Fuel oil pump test bench
(C) Waste heat recovery equipment 80%
(i) Air pre-heaters and recuperators
(ii) Feed water heaters and economisers
(iii) Thermal energy wheel for low and high temperature heat recovery
(iv) Heat pumps
(D) Co-generation systems 80%
(i) Controlled extraction, back pressure pass out, extraction cum condensing turbines for cogeneration along with pressure boilers
(ii) Organic rankine cycle power systems
(iii) Vapour absorption refrigeration systems
(iv) Low inlet pressure small steam turbines
(E) Electrical equipment 80%
(i) Synchronous condenser systems and shunt capacitors
(ii) Relays (automatic power cut off devices)
(iii) Power factor controller for AC motors
(iv) Automatic voltage controller
(v) Solid state devices for controlling motor speeds
(vi) FACT (Flexible AC Transmission) devices, Thyristor controlled series compensation equipment
(vii) Thermally energy-efficient stenters
(viii) Series compensation equipment
(ix) TOD (Time of Day) energy meters
(x) Intelligent electronic devices/remote terminal units, computer software/hardware, bridges/router, other required equipment and associated communication systems for data acquisition systems and supervisory control, distribution management systems and energy management systems for power transmission systems
(xi) Special energy meters for ABT (Availability Based Tariff)
(F) Burners 80%
(i) Zero to ten per cent excess air burners
(ii) Burners using air with high preheat temperature (above 300 degrees Celsius)
(iii) Emulsion burners
(G) Other equipment 80%
(i) Mechanical vapour recompressors
(ii) Wet air oxidation equipment for recovery of heat and chemicals
(iii) Automatic microprocessor based load demand controllers
(iv) Thin film evaporators
(v) Fluid couplings and fluid drives
(vi) Coal based producer gas plants
(vii) Super-charges/turbo charges
(viii) Sealed radiation sources for radiation processing plants
10. Gas cylinders including regulators and valves 60%
11. Glass manufacturing concerns, Direct fire glass melting furnaces 60%
12. Mineral oil concerns 60%
(i) Plant used in field operations (above ground) distribution, returnable packages
(ii) Plant used in field operations (below ground), but not including kerbside pumps including fittings and tanks used in field operations (distribution) by mineral oil concerns
13. Renewable energy devices 60%
(i) Pipe type and concentrating solar collectors
(ii) Flat plate solar collectors
(iii) Solar cookers
(iv) Air/fluid/gas heating systems
(v) Solar water heaters and systems
(vi) Solar crop drivers and systems
(vii) Solar steels and desalination systems
(viii) Solar refrigeration, air conditioning systems and cold storages
(ix) Solar pumps based on solar-photovoltaic and solar-thermal conversion
(x) Solar power generating systems
(xi) Solar-photovoltaic panels and modules for water pumping and other applications
14. Wind mills and any other specially designed devices that operate on wind mills (installed on or after April 1, 2014) 80%
15. Any special devices including electric pumps and generators operating on wind energy (installed on or after April 1, 2014) 80%
16. Books owned by assessees carrying on a profession
(i) Books, being annual publications 100%
(ii) Books, excluding those covered by entry (i) above 60%
(iii) Books owned by assessees carrying on business in running lending libraries 100%
Ships 4(i) Ocean-going ships including tugs, survey launches, dredgers, barges and other similar ships used primarily for dredging purposes and sighing vessels with wooden hull
4(ii) Vessels ordinarily operating on inland waters, not covered by sub-item (iii) below 20%
4 (iii) Vessels ordinarily operating on inland waters being speed boats 20%

Part B Intangible Assets:
Patents, know-how, trademarks,franchises,copyrights, licenses or any other commercial or business right of similar nature – 25% is the Depreciation Rate.

7. Example for Depreciation calculation

In 2017-18 Company purchased the following assets –

Asset Name Purchase Amt. Date of Purchase Depreciation Rate
Machine 1 500000 14-Apr 15%
Furniture 20000 15-Aug 10%
Car 300000 25-Dec 15%
Machine 2 40000 26-Jan 15%

Depreciation will be computed as follows:

Name of asset Block 1 Block 2 Block 3
Machine – 15% Furniture – 10% Car -15%
Opening Value 0 0 0
Add-

Purchases (>or = 180 days)

Purchase (<180 days)

 

500000

40000

 

20000

 

 

300000

Less-

Sold during the year

 

0

 

0

 

0

Closing value of block before depreciation 540000 20000 300000
Depreciation 78000 2000 22500
(500000*15% + 40000*15%*1/2) (20000*10%) (300000*15%*1/2)
Closing WDV after depreciation 462000 18000 277500

Download Depreciation Rates as per Income Tax Act