ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Tax & Taxes

Depreciation rates chart as per Income Tax Act for 2013-14

Updated on November 11, 2014
Burden of Tax
Burden of Tax | Source

Depreciation Rates Chart as per Indian Income Tax Act, 1961-

ASSET CLASS
BLOCK NUMBER
SUB ITEM NUMBER
ASSET TYPE
RATE OF DEPRECIATION
Building
Block-01
i.
All Residential buildings except hotels and boarding houses
5%
Building
Block-02
ii.
Other than Residential buildings (not covered in Block No.1 &3)
10%
Building
Block-03
i.
Building acquired on or after 01st Sep,2002 for installing P&M forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities u/s 80-IA(4)(i)
100%
Building
Block-03
ii.
Purely temporary erections such as wooden structures
100%
Furniture
Block-04
i.
Furniture - Any furniture / fittings including electrical fittings
10%
Plant & Machinery
Block-05
i.
Motor cars other than those used in a business of running them on hire
15%
Plant & Machinery
Block-05
ii.
P&M other those covered in block no. 6 to 11 below.
15%
Plant & Machinery
Block-06
i.
Motor buses/taxies/lorries used in a business of running them on hire
30%
Plant & Machinery
Block-06
ii.
Moulds used in plastic and rubber factories
30%
Plant & Machinery
Block-06
iii.
P&M used in semi-conductor industry other than those covered in Block no. 11 below
30%
Plant & Machinery
Block-07
i.
Aero planes-Aero engines
40%
Plant & Machinery
Block-07
ii.
Commercial vehicle acquired on or after 01st Oct,1998 but before 01st Apr,1999 and is put to used before 01st Apr,1999 for purpose of Business or Profession (B or P)
40%
Plant & Machinery
Block-07
iii.
Specified lifesaving medical equipment
40%
Plant & Machinery
Block-08
i.
New commercial vehicle acquired/purchased on or after 01st Apr 2001 but before 01st Apr,2002 and put to use before 01st Apr,2002 for (B or P)
50%
Plant & Machinery
Block-08
ii.
New commercial vehicle acquired/purchased on or after 01st Jan,2009 but before 01st Oct,2009 and put to use before 01st Oct,2009 for (B or P)
50%
Plant & Machinery
Block-08
iii.
Glass or Plastic containers used as re-fills
50%
Plant & Machinery
Block-08
iv.
P&M used in weaving , processing and garment sector of textile industry purchased under TUFS on or after 01st Apr,2001 but before 01st Apr,2004 and put to use before 01st Apr,2004
50%
Plant & Machinery
Block-09
i.
Computers and computer software
60%
Plant & Machinery
Block-09
ii.
Books owned by professional (other than annual publications=or books owned by assesses carrying on business in running lending libraries)
60%
Plant & Machinery
Block-09
iii.
Gas cylinder , valves and regulators. Direct fire glass melting furnaces, Plant used in filed operations distribution above/below ground but not include curbside pumps & underground tanks and fittings used in field operations (distribution) by mineral oil concerns.
60%
Plant & Machinery
Block-10
i.
Energy saving and renewal energy devices, Rollers used in flour mills and sugar works, Rolling mill rolls used in iron and steel industry.
80%
Plant & Machinery
Block-11
i.
P&M acquired and installed on or after 01st Sep,2002 in water supply project or a water treatment system and put to use for the purpose of business of providing infrastructure facility u/s 80-IA(4)(i).
100%
Plant & Machinery
Block-11
ii.
Wooden parts used in artificial silk manufacturing machinery
100%
Plant & Machinery
Block-11
iii.
Cinematograph films- bulbs of studio lights.
100%
Plant & Machinery
Block-11
iv.
Mach factories-wooden match frames.
100%
Plant & Machinery
Block-11
v.
Windnig ropes , Tubes , haulage ropes and sand stowing pipes, and safety lamps used in mines and quarries
100%
Plant & Machinery
Block-11
vi.
Salt works-Salt pans, reservoirs and condensers , etc. made of earthy, sandy or clayey material or any other similar material
100%
Plant & Machinery
Block-11
vii.
Books owned by assesses carrying on a profession , being annual publications.
100%
Plant & Machinery
Block-11
viii.
Books owned by assesses carrying on business in running lending libraries.
100%
Plant & Machinery
Block-11
ix.
Water pollution, Air Pollution control equipment, control equipment, solid waste control equipment, solid waste recycling and resource recovery systems.
100%
Ships
Block-12
i.
Ocean going ships
20%
Ships
Block-12
ii.
Vessels ordinarily operating on inland waters, not covered in below items
20%
Ships
Block-12
iii.
Vessels ordinarily operating on inland waters being speed boats.
20%
Intangible Assets
Block-13
i.
Know-how, patents, copyrights, trademarks, licences, franchisees or any other business or commercial rights of similar nature.
25%
Lots of Taxes
Lots of Taxes | Source

Great, You Saved a Lot of Tax & Money!!!!!

Lots of Money
Lots of Money | Source

Save Income Tax in India A.Y. 2013-14-

Additional Notes on Depreciation-

DEPRECIATION (BASIC POINTS)

  • Assesse must be owner of the asset & used in business or profession.
  • He may not be registered owner of the asset.
  • Here only WDV method is used under Block of assets concept, unless block becomes empty or WDV becomes 0.
  • In case of amalgamation, merger etc., no. of days used to taken to cal. depreciation.
  • Depreciation Is charged if asset can be used, i.e “Ready to use”, whether actually used or not.
  • Half dep. If used for less than 180 days & no dep. In year of sale of asset.
  • Dep. Of 5% is charged on residential buildings used for business purposes.
  • Only actual money received on sale of asset is deducted in block, not the benefits which can’t be converted in money.
  • Depreciation is allowed even if it is not claimed by the assesse.
  • Dep. Is cal. Only on asset. Asset is one which can give future benefits (irrespective of the amt.)
  • Value of asset includes purchase cost + costs incurred to make machinery ready to use + interest paid on loan taken to purchase machinery, but only int. paid before machinery was put to use.
  • If dep. Is not fully absorbed, it can be set off & carry f/w. to infinite no. of years & continuing of business is not important/required for it.
  • Additional Depreciation-
  1. Available only if assesse fulfills three conditions-

a) Assesse must be engaged in manufacturer/production of an article or thing.

b) Only available in first year of purchase.

c) It should be eligible plant & machinery.

d) It should be not building, furniture & old P&M.

e) Rate- 20% p.a , if less than 180 days, 10 % p.a.

f) Eligible P&M is one which is not ships & aircraft ,mach. Used outside india, machinery in office premises & furniture and buildings, power generating unit, mach. With 100% dep.

  • Dep. Of asset under-

Lease-

a) If lessee has done a capital exp. in a building, he can claim dep. On that part.

Otherwise, only lessor can claim dep. On his assets leased.

b) Exception- If lessee in case of financial lease can exercise the rights of the owner not on behalf of lessor but in his own right, dep. is available to lessee.

Hire-purchase-

a) Seller has the right to claim depreciation unless-

  • Ø H.p agreement gives right to hirer over asset for all practical purposes. +
  • Ø Hirer has paid all installments to seller.

Then he can claim dep.

DEP. IN CASE OF POWER GENERATING UNITS

  • SLM-
  1. If PGU sold below WDV, the loss will be treated as terminal depreciation.
  2. If asset sold over & above WDV, surplus is balancing charge.
  3. If asset sold above cost of asset, the over & above amount will be STCG.


  • WDV-
  1. If PGU sold below WDV, treated as loss & sent to P/L ac.
  2. No Balancing charge & STCG here.
  3. Any profit is simply taxable as business profit.
  • Notes related to above 2-
    • Ø All rules of 180 days are still applicable.
    • Ø If asset sold in P.Y in which it was put to use, then no T. Dep. & B.C, any loss= STCL & profit= STCG.

Characteristics which a fixed asset should have-

  • Ø Asset should be able to give future benefits.
  • Ø It is not a routine expenditure.
  • Ø Cap. Exp. improves the existing capacity of the asset.
  • Ø It should be non-recurring in nature.
  • Ø Amount of the exp. & its mode of payment cannot decide the nature of the asset.

Eg.- Fluorescent lights installed for the 1st time in office is a capital exp. but all subsequent replacement of lights is a revenue expenditure.

Taxability under the Income tax act 1961

That's it from my side. Hope you liked this chart on Income Tax Act, 1961 Depreciation Rates. If you are planning to to save some tax & a lot of money, then this will surely help you a lot.

In case, you want to give any suggestion for improvement of this article, please do leave your feedback below in Comments & Poll Section & please leave your feedback. It will help me to write better & write the content which you all need.

Thanks a lot for the time you invested in reading my hub. Cheers!!!! & All the Best!!!!!!

Did you liked this hub?

See results

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)