Depreciation rates are prescribed in the Income Tax Act to calculate depreciation deductible from the Total Income. Depreciation under Income Tax can be claimed only by assessees who has Income From Business/Profession.

Depreciation Rate Chart – Quick View

Download Depreciation Rate Chart

Depreciation Rate as prescribed by the Income Tax Act

Depreciation Rate Chart – Quick View

 AssetDepreciation Rate
ABuilding: Residential5%
BBuilding: Factory10%
CTemporary Buildings such as Wooden  Structures100%
DGeneral Plant & Machinery15%
DMotor Car15%
EMotor Buses/Lorries Used In Hire30%
FComputers including Software60%
GFurniture10%
HPatents, Know-how, copyrights, licenses etc.25%

Depreciation Rate Chart Download

Depreciation Rate Chart

Depreciation Rates as Prescribed by the Income Tax Act

(I)Buildings: 
 (a) Buildings which are used mainly for residential purposes except hotels and Boarding House5
 (b) Buildings which are not used mainly for residential purposes and other than mentioned in a & c10
 (c) Buildings acquired on or after 1-9-2002 for installing P & M forming part of water supply project or water treatment system and put to use for the purpose of providing infrastructure facilities u/s. 80- IA(4)(i)100
 (d) Purely temporary erections such as wooden structures100
 Note 
 “Buildings” include roads, bridges, culverts, wells and tube wells. 
 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-thirds per cent of its total built-up floor area and shall include any such buildings in the factory premises. 
 Water treatment system includes system for desalination, demineralisation and purification of water. 
(II)Furniture and fittings including electrical fittings10
 Electrical fittings include electrical wiring, switches, sockets, other fitting and fans, etc 
(III)Machinery and plant: 
 Plant has been held to include : 
 movable partitions 
 Sanitary & pipeline fitting 
 ceiling and pedestal fans 
 wells 
 hospital 
 However, w.e.f. A.Y. 2004-05, it shall not include buildings, furniture and fittings. 
 1) Machinery & plant other than those covered by sub-items 2, 3 and 8 below15
 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. 
 2) Motor-cars (other than those used in business of running them on hire) acquired or put to use on15
 or after 1st April, 1990 
 3) (i) Aeroplane-Aeroengines40
 (ii) Motor buses, Motor lorries and Motor used in a business of running them on hire30
 iii) Commercial vehicle 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
 (vii) New Commercial vehicle acquired on or after 1-1-2009 but before 1-10-2009 and put to use before 1-10-2009 for the purpose of business or profession50
 • “Commercial vehicle” means — heavy goods vehicle, heavy passenger motor vehicle, light motor vehicle, medium goods vehicle, medium passenger motor vehicle. 
 • It does not include “maxi-cab”, “motor-cab”, “tractor” and “road-roller”. 
 (viii) Moulds used in rubber and plastic goods factories30
 (ix) Air pollution control equipment100
 (x) Water pollution control equipment100
 (xi) Solid waste control equipment100
 (xii) P & M used in semi-conductor industry30
 (xiii) Life saving medical equipment40
 4) Containers made of glass or plastic used as refills50
 5) Computers (including computer software)60
 “Computer Software” means any computer programme recorded on any disc, tape, perforated media or other information storage device. 
 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 1-4-200450
 7) Machinery and plant, acquired and installed on or after the 1-9-2002 in a water supply project or a water treatment system and which is put to use for the purpose of business of providing infrastructure facility under 80-ia(4)(i)100
 8) For other items of P & M refer to Rule 5 App. 1100/80/60
 9) (i) Books owned by assessees carrying on a profession 
 — Annual publications100
 — Other books60
 (ii) Books owned by assessees carrying on business in running lending libraries100
(IV)Ships20
 “Speed boat” means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometers 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. 
(V)Intangible Assets25
 Know-how patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature acquired on or after 1-4-1998. 

One Response to Depreciation Rates under the Income Tax Act

  1. comment
    Kalyan on Jul 25, 2013

    Very good info.
    thanks

Leave a Reply