Depreciation Rates as per Income Tax Act fot Assessment Year 2012-13

Reference the study on Depreciation in the previous article, we are providing a table on various Depreciation Rates, as per Income Tax Act, applicable for the Financial Year 2011-12, are as follows:

Block of Assets Rate in %
A. TANGIBLE ASSETS
1. BUILDING (Depreciation Rates as per Income Tax Act)
   (i) Residential Buildings (Except Hotel & Boarding Houses) 5
   (ii) Buildings other than Residential building 10
   (iii) Purely temporary erections such as wooden structure 100
2. FURNITURE AND FITTING
       Furniture and fittings including electric fittings 15
3. PLANT & MACHINERY (Depreciation Rates as per Income Tax Act)
   (1) Machinery and plant other than those covered below 25
   (2) (i) Motor cars (Except those used in a business of running them on hire) 20
       (ii) Motor cars, buses, lorries and taxis  used in a business of running them on hire 40
   (3) Moulds used in rubber and plastic goods factories 40
   (4) Air pollution control equipments, being 80
        (i) Electrostatic precipitation systems,
        (ii) Felt-filter systems,
        (iii) Dust collector systems
        (iv) Scrubber-counter current/venturi/packed-bed/cyclonic scrubbers
        (v) Ash handling system and evacuation system
    (5) Water pollution control equipments, being 80
        (i) Mechanical screen systems,
        (ii) Aerated detritus chambers (including air compressor),
        (iii) Mechanically skimmed oil and grease removal systems,
        (iv) Chemical feed systems and flash mixing equipments,
        (v) Mechanical flocculators and mechanical reactors,
        (vi) Diffused air/mechanically aerated activated sludge systems,
        (vii) Aerated logoon systems,
        (viii) Biofilters,
        (ix) Methane-recovery anaerobic digester systems,
        (x) Air floatation systems,
        (xi) Air/steam stripping systems,
        (xii) Ion exchange resin column
        (xiii) Activated carbon column
       (xiv) Solid waste control equipments, being Caustic/lime/chrome/mineral/cryolite recovery system 80
(4) Containers made of glass or plastic used as refills 50
(5) Computers including computer software 60
(6) Machinery and Plant, acquired and installed on or after the 1st day of September,2002 in a water supply project or a water treatment Depreciation Rates as per Income Tax Act 100
(7)  (i)  Wooden parts used in artificial silk manufacturing machinery 100
      (ii) Cinematograph films-bulbs of studio lights
      (iii) Match factories-Wooden match frames
      (iv) Mines and quarries:
      (v) Sugar works –Rollers
(8) Energy saving devices being- Specialised bollers and furnaces, Ignifluid/fluidized bed boilers, Flameless furnaces 80
(9) (i) Books owned by an assessee carrying on a  profession :-
          (a)Books, being annual publications 100
          (b)Books, other than annual publications 60
     (ii) Books owned by assessees carrying on business in running lending libraries 100
(10)   SHIPS 25
B. INTANGIBLE ASSETS
Know-how ,patents ,copyrights ,trademarks ,licences ,franchises or any other business or commercial rights of similar nature 25

Notes:

  1. “Building” include roads, bridges, culverts, wells and tubewells.
  2. Water treatment/system includes system for desalinization ,demineralization and purification of water
  3. “Electrical fittings” include electrical wiring ,switches ,sockets ,other fittings and fans etc.
  4. “Computer software” means any computer programme recorded on any disc ,tape,perforated media or their information storage device
  5. 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
    .