Depreciation Rates as per Income Tax Act for FY 2023-24

SL No.

Block of assets

Rate of Depreciation (%)

1

Buildings which are used mainly for residential purposes except hotels and boarding houses

5

2

Buildings other than those used mainly for residential purposes and not covered by sub-items

10

3

Buildings acquired after September 1, 2002, for installing machinery and plant forming part of water supply or treatment systems, and used for providing infrastructure facilities under section 80-IA

40

4

Purely temporary erections such as wooden structures

40

SL No.

Block of assets

Rate of Depreciation (%)

1

Furniture and fittings including electrical fittings

10

SL No.

Block of assets

Rate of Depreciation (%)

1

Machinery and plant other than those covered by sub-items (2), (3) and (8) below

15

2 (i)

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

 (ii)

Motor cars (excluding those used for hire) acquired between August 23, 2019, and April 1, 2020, and put to use before April 1, 2020

30

3 (i)

Aeroplanes - Aeroengines

40

 (ii) (a)

Motor buses, motor lorries and motor taxis used in a business of running them on hire other than those covered under entry (b)

30

 (b)

Motor buses, motor lorries and motor taxis used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020.

45

(iii)

A commercial vehicle acquired by an assessee between October 1, 1998, and April 1, 1999, and put to use for any period before April 1, 1999, for business or professional purposes in accordance with the third proviso to clause (ii) of sub-section (1) of section 32

40

(iv)

A new commercial vehicle acquired between October 1, 1998, and April 1, 1999, in replacement of a condemned vehicle over 15 years of age and put to use for any period before April 1, 1999, for business or professional purposes in accordance with the third proviso to clause (ii) of sub-section (1) of section 32

40

(v)

A new commercial vehicle acquired between April 1, 1999, and April 1, 2000, in replacement of a condemned vehicle over 15 years of age and put to use before April 1, 2000, for business or professional purposes in accordance with the second proviso to clause (ii) of sub-section (1) of section 32

40

(vi)

A new commercial vehicle acquired between April 1, 2001, and April 1, 2002, and put to use before April 1, 2002, for business or professional purposes or A new commercial vehicle acquired between Jan 1, 2009, and Oct 1, 2009, and put to use before Oct 1, 2009, for business or professional purposes

40

(vii)

Moulds used in rubber and plastic goods factories

30

(viii)

Air pollution control equipment such as electrostatic precipitation systems, felt-filter systems, dust collector systems, scrubber systems, and ash handling systems

40

(ix)

Water pollution control equipment includes Mechanical screen systems, Aerated detritus chambers (including air compressor), Mechanically skimmed oil and grease removal systems, Chemical feed systems and flash mixing equipment, Mechanical flocculators and mechanical reactors, Diffused air/mechanically aerated activated sludge systems, Aerated lagoon systems, Biofilters, Methane-recovery anaerobic digester systems, Air floatation systems, Air/steam stripping systems, Urea Hydrolysis systems, Marine outfall systems, Centrifuge for dewatering sludge, Rotating biological contractor or bio-disc, Ion exchange resin column and Activated carbon column

40

(x)

Equipment for controlling solid waste, such as systems for recovering caustic, lime, chrome, mineral, or cryolite, and systems for recycling and recovering resources from solid waste.

40

(xi)

Machinery and plants used in the semi-conductor industry for producing integrated circuits (ICs) ranging from SSI to LSI/VLSI and discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., except those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below

30

(xii)

Life saving medical equipment, inclides D.C. Defibrillators for internal use and pace makers,Haemodialysors, Heart lung machine, Cobalt Therapy Unit, Colour Doppler, SPECT Gamma Camera, Vascular Angiography System including Digital subtraction Angiography, Ventilator used with anaesthesia apparatus, Magnetic Resonance Imaging System, Surgical Laser, Ventilators other than those used with anaesthesia, Gamma knife, Bone Marrow Transplant Equipment including silastic long standing intravenous catheters for chemotherapy, Fibreoptic endoscopes including Paediatric resectoscope/audit resectoscope, Peritoneoscopes, Arthoscope, Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope, Fibreoptic Flexible Oesophago Gastroscopeand Laparoscope (single incision)

40

4

Containers made of glass or plastic used as re-fills

40

5

Computers including computer software

40

6

Machinery and plant used in the weaving, processing, and garment sector of the textile industry purchased under the Technology Upgradation Fund Scheme (TUFS) between April 2001 and April 2004 and put to use before April 2004

40

7

Machinery and plant acquired on or after 1st September 2002 for water supply projects or water treatment systems used to provide infrastructure facilities for business purposes under section 80-IA(4)(i)

40

8 (i)

Wooden parts used in artificial silk manufacturing machinery

40

(ii)

Cinematograph films - bulbs of studio lights

40

(iii)

Match factories - Wooden match frames

40

(iv)

Mines and quarries includes Tubs, winding ropes, haulage ropes, sand stowing pipes, Safety lamps

40

(v)

Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material

40

(vi)

Flour mills - Rollers

40

(vii)

Iron and steel industry - Rolling mill rolls

40

(viii)

Sugar works - Rollers

40

(ix)

Energy saving devices, includes— A. Specialised boilers and furnaces: (a)  Ignifluid/fluidized bed boilers (b)  Flameless furnaces and continuous pusher type furnaces (c)  Fluidized bed type heat treatment furnaces (d)  High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers)

40

B. Instrumentation and monitoring system for monitoring energy flows: (a)  Automatic electrical load monitoring systems (b)  Digital heat loss meters (c)  Micro-processor based control systems (d)  Infra-red thermography (e)  Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters (f)  Maximum demand indicator and clamp on power meters (g)  Exhaust gases analyser (h)  Fuel oil pump test bench

40

C. Waste heat recovery equipment: (a)  Economisers and feed water heaters (b)  Recuperators and air pre-heaters (c)  Heat pumps (d)  Thermal energy wheel for high and low temperature waste heat recovery

40

D. Co-generation systems: (a)  Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers (b)  Vapour absorption refrigeration systems (c)  Organic rankine cycle power systems (d)  Low inlet pressure small steam turbines

40

E. Electrical equipment: (a)  Shunt capacitors and synchronous condenser systems (b)  Automatic power cut off devices (relays) mounted on individual motors (c)  Automatic voltage controller (d)  Power factor controller for AC motors (e)  Solid state devices for controlling motor speeds (f)  Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water) (g)  Series compensation equipment (h)  Flexible AC Transmission (FACT) devices - Thyristor controlled series compensation equipment (i)  Time of Day (ToD) energy meters (j)  Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient region (k)  Remote terminal units/intelligent electronic devices, computer hardware/software, router/bridges, other required equipment and associated communication systems for supervisory control and data acquisition systems, energy management systems and distribution management systems for power transmission systems (l)  Special energy meters for Availability Based Tariff (ABT)

40

F. Burners: (a)  0 to 10 per cent excess air burners (b)  Emulsion burners (c)  Burners using air with high pre-heat temperature (above 300°C)

40

Other equipment: (a)  Wet air oxidation equipment for recovery of chemicals and heat (b)  Mechanical vapour recompressors (c)  Thin film evaporators (d)  Automatic micro-processor based load demand controllers (e)  Coal based producer gas plants (f)  Fluid drives and fluid couplings (g)  Turbo charges/super-charges (h)  Sealed radiation sources for radiation processing plants

40

(x)

Gas cylinders including valves and regulators

40

(xi)

Glass manufacturing concerns - Direct fire glass melting furnaces

40

(xii)

Mineral oil concerns: (a)  Plant used in field operations (above ground) distribution - Returnable packages (b)  Plant used in field operations (below ground), but not including kerbside pumps including underground tanks and fittings used in field operations (distribution) by mineral oil concerns

40

(c)  Oil wells not covered in clauses (a) and (b) (with effect from the assessment year 2016-17)

15

(xiii)

Renewable energy devices include a wide range of technologies such as solar collectors (flat plate, concentrating, pipe type), solar cookers, solar water heaters, air/gas/fluid heating systems, solar crop driers, solar refrigeration and air-conditioning systems, solar power generating systems, solar pumps, solar-photovoltaic modules and panels, windmills, biogas plants and engines, electric vehicles, waste conversion devices, ocean waste and thermal energy utilization equipment, and machinery for manufacturing these devices

40

(9)(i)

Books owned by assessees carrying on a profession— (a)  Books, being annual publications

40

(b)  Books, other than those covered by entry (a) above

40

(ii)

Books owned by assessees carrying on business in running lending libraries

40

SL No.

Block of assets

Rate of Depreciation (%)

 1

(1)  Ocean-going ships including dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with wooden hull (2)  Vessels ordinarily operating on inland waters, not covered by sub-item (3) below (3)  Vessels ordinarily operating on inland waters being speed boats

20

SL No.

Block of assets

Rate of Depreciation (%)

1

Franchise, trademark, patents, license, copyright, know-how or other commercial or business rights of similar nature

25