18 November 2008
Computer includes software: The Appendix I to the Income-tax Rules was amended and the amended appendix provides that software is included within computer. In the latest appendix which is effective from assessment year 2006-07 onwards we find the following relevant entry:- III. Machinery and plant "5. Computers including computer software (see note 7 below this table) - 60%" The note number 7 reads as follows:- "Computer software" means any computer program recorded on any disc, tape, perforated media or other information storage device. Thus, we find that computer software which is required to operate the computer for different functions is included within the meaning of computer for the purpose of allowing depreciation allowance.
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