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APPENDIX I

 

(See rule 25)

 

TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE

 

PART A

TANGIBLE ASSETS

 

S.No.

 

 

Block of assets

Depreciation allowance as percentage  of  written  down

 

 

 

 

value

(1)

 

 

(2)

(3)

I.

 

 

Building [See Notes 1 to 4 below]

 

 

1

 

Buildings which are used mainly for residential purposes

5

 

 

 

except hotels and boarding houses

 

 

2

 

Buildings other than those used mainly for residential

10

 

 

 

purposes and not covered by sub-items (1) above and (3) below

 

 

3

 

Buildings for installing machinery and plant 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 under section 80-IA(4)(i) of the

40

 

 

 

Income-tax Act, 1961

 

 

4

 

Purely temporary erections such as wooden structures

40

II

 

 

Furniture and fittings

 

 

 

 

Furniture and fittings including electrical fittings [See Note 5

10

 

 

 

below]

 

III

 

 

Machinery and Plant

 

 

1

 

Machinery and plant other than those covered by sub-items

15

 

 

 

(2), (3) and (8) below:

 

 

2

(i)

Motor cars, other than those used in a business of running them on hire, except those covered under entry (ii) acquired

15

 

 

 

on or after the 1st April, 1990;

 

 

 

(ii)

Motor cars, other than those used in a business of running them on hire, acquired on or after the 23rd August, 2019 but before the 1st April, 2020 and is put to use before the 1st

30

 

 

 

April, 2020.

 

 

3

(i)

Aeroplanes - Aeroengines

40

 

 

(ii)

Motor buses, motor lorries and motor taxis used in a business

30

 

 

 

of running them on hire.

 

 

 

(iii)

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

45

 

 

 

the 1st April, 2020.

 

 

 

(iv)

New commercial vehicle which is acquired on or after the 1st January, 2009 but before the 1st October, 2009 and is put to use before the 1st October, 2009 for the purposes of business

40

 

 

 

or profession [See Note 6 below]

 

 

 

(v)

Moulds used in rubber and plastic goods factories

30

 

 

(vi)

Air pollution control equipment, being—

 

 

 

(a)

Electrostatic precipitation systems

40

 

 

(b)

Felt-filter systems

40

 

 

(c)

Dust collector systems

40

 

 

(d)

Scrubber-counter current/venturi/packed bed/cyclonic

40

 

 

 

scrubbers

 

 

 

(e)

Ash handling system and evacuation system

40

 

 

(vii)

Water pollution control equipment, being—

 

 

 

(a)

Mechanical screen systems

40

 

 

(b)

Aerated detritus chambers (including air compressor)

40

 

 

(c)

Mechanically  skimmed  oil  and  grease  removal

40

 

 

 

systems

 

 

 

(d)

Chemical feed systems and flash mixing equipment

40

 

 

(e)

Mechanical flocculators and mechanical reactors

40

 

 

(f)

Diffused air/mechanically aerated activated sludge

40

 

 

 

systems

 

 

 

(g)

Aerated lagoon systems

40

 

 

(h)

Biofilters

40

 

 

(i)

Methane-recovery anaerobic digester systems

40

 

 

(j)

Air flotation systems

40

 

 

(k)

Air/steam stripping systems

40

 

 

(l)

Urea Hydrolysis systems

40

 

 

(m)

Marine outfall systems

40

 

 

(n)

Centrifuge for dewatering sludge

40

 

 

(o)

Rotating biological contractor or bio-disc

40

 

 

(p)

Ion exchange resin column

40

 

 

(q)

Activated carbon column

40

 

 

(viii) (a)

Solid waste, control equipment being - caustic/lime/

40

 

 

 

chrome/mineral/cryolite recovery systems

 

 

 

(b)

Solid waste recycling and resource recovery systems

40

 

 

(ix)

Machinery and plant, used in semi-conductor industry covering all Integrated Circuits (ICs) (excluding hybrid integrated circuits) ranging from Small Scale Integration (SSI) to Large Scale Integration/Very Large Scale Integration (LSI/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entries (iv), (v) and (vi) of this sub-item and sub-

30

 

 

 

item (7) below.

 

 

 

(x)

Life saving medical equipment, being—

 

 

 

(a)

D.C. Defibrillators for internal use and pace makers

40

 

 

(b)

Heamodialysors

40

 

 

(c)

Heart lung machine

40

 

 

(d)

Cobalt Therapy Unit

40

 

 

(e)

Colour Doppler

40

 

 

(f)

SPECT Gamma Camera

40

 

 

(g)

Vascular  Angiography  System  including  Digital

40

 

 

 

Subtraction Angiography

 

 

 

(h)

Ventilator used with anaesthesia apparatus

40

 

 

(i)

Magnetic Resonance Imaging System

40

 

 

(j)

Surgical Laser

40

 

 

(k)

Ventilator other than those used with anaesthesia

40

 

 

(l)

Gamma knife

40

 

 

(m)

Bone Marrow Transplant Equipment including silastic

40

 

 

 

long standing intravenous catheters for chemotherapy

 

 

 

(n)

Fibre optic 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,

40

 

 

 

Fibreoptic Flexible Oesophago Gastroscope

 

 

 

(o)

Laparoscope (single incision)

40

 

4

 

Containers made of glass or plastic used as re-fills

40

 

5

 

Computers including computer software (See Note 7 below)

40

 

6

 

Machinery and plant, acquired and installed on or after the 1st September, 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 clause (i) of sub-section (4) of section 80-IA of the Income-tax Act, 1961

40

 

 

 

[See Notes 4 and 8 below]

 

 

7

(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

 

 

 

(a)

Tubs winding ropes, haulage ropes and sand stowing

40

 

 

 

pipes

 

 

 

(b)

Safety lamps

40

 

 

(v)

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

40

 

 

 

material

 

 

 

(vi)

Flour mills – Rollers

40

 

 

(vii)

Iron and steel industry - Rolling mill rolls

40

 

 

(viii)

Sugar works – Rollers

40

 

 

(ix)

Energy saving devices, being—

 

 

 

A.

Specialised boilers and furnaces:

 

 

 

(a)

Ignifluid/fluidized bed boilers

40

 

 

(b)

Flameless furnaces and continuous pusher type

40

 

 

 

furnaces

 

 

 

(c)

Fluidized bed type heat treatment furnaces

40

 

 

(d)

High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired

40

 

 

 

and 80 per cent in case of oil/gas fired boilers)

 

 

 

B.

Instrumentation and monitoring system for monitoring

 

 

 

 

energy flows :

 

 

 

(a)

Automatic electrical load monitoring systems

40

 

 

(b)

Digital heat loss meters

40

 

 

(c)

Micro-processor based control systems

40

 

 

(d)

Infra-red thermography

40

 

 

(e)

Meters for measuring heat losses, furnace oil

40

 

 

 

flow, steam flow, electric energy and power factor meters

 

 

 

(f)

Maximum demand indicator and clamp on

40

 

 

 

power meters

 

 

 

(g)

Exhaust gases analyzer

40

 

 

(h)

Fuel oil pump test bench

40

 

 

C.

Waste heat recovery equipment:

 

 

 

(a)

Economisers and feed water heaters

40

 

 

(b)

Recuperators and air pre-heaters

40

 

 

(c)

Heat pumps

40

 

 

(d)

Thermal energy wheel for high and low

40

 

 

 

temperature waste heat recovery

 

 

 

D.

Co-generation systems:

 

 

 

(a)

Back pressure pass out, controlled extraction,

40

 

 

 

extraction-cum-condensing turbines for co- generation along with pressure boilers

 

 

 

(b)

Vapour absorption refrigeration systems

40

 

 

(c)

Organic rankine cycle power systems

40

 

 

(d)

Low inlet pressure small steam turbines

40

 

 

E.

Electrical equipment:

 

 

 

(a)

Shunt capacitors and synchronous condenser

40

 

 

 

systems

 

 

 

(b)

Automatic  power  cut-off  devices  (relays)

40

 

 

 

mounted on individual motors

 

 

 

(c)

Automatic voltage controller

40

 

 

(d)

Power factor controller for AC motors

40

 

 

(e)

Solid state devices for  controlling  motor

40

 

 

 

speeds

 

 

 

(f)

Thermally  energy-efficient  stenters  (which

40

 

 

 

require 800 or less kilocalories of heat to evaporate one kilogram of water)

 

 

 

(g)

Series compensation equipment

40

 

 

(h)

Flexible AC Transmission (FACT) devices -

40

 

 

 

Thyristor controlled series compensation equipment

 

 

 

(i)

Time of Day (ToD) energy meters

40

 

 

(j)

Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient

40

 

 

 

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

40

 

 

 

transmission systems

 

 

 

(l)

Special energy meters for Availability Based

40

 

 

 

Tariff (ABT)

 

 

 

F.

Burners:

 

 

 

(a)

0 to 10 per cent excess air burners

40

 

 

(b)

Emulsion burners

40

 

 

(c)

Burners using air with high pre-heat

40

 

 

 

temperature (above 300°C)

 

 

 

G.

Other equipment:

 

 

 

(a)

Wet air oxidation equipment for recovery of

40

 

 

 

chemicals and heat

 

 

 

(b)

Mechanical vapour recompressors

40

 

 

(c)

Thin film evaporators

40

 

 

(d)

Automatic micro-processor based load

40

 

 

 

demand controllers

 

 

 

(e)

Coal based producer gas plants

40

 

 

(f)

Fluid drives and fluid couplings

40

 

 

(g)

Turbo charges/super-charges

40

 

 

(h)

Sealed radiation sources for radiation

40

 

 

 

processing plants

 

 

 

(x)

Gas cylinders including valves and regulators

40

 

 

(xi)

Glass manufacturing concerns - Direct fire glass melting

40

 

 

 

furnaces

 

 

 

(xii)

Mineral oil concerns:

 

 

 

(a)

Plant  used  in  field  operations  (above  ground)

40

 

 

 

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

40

 

 

 

(distribution) by mineral oil concerns

 

 

 

(c)

Oil wells not covered in clauses (a) and (b)

15

 

 

(xiii)

Renewable energy devices being

 

 

 

(a)

Flat plate solar collectors

40

 

 

(b)

Concentrating and pipe type solar collectors

40

 

 

(c)

Solar cookers

40

 

 

(d)

Solar water heaters and systems

40

 

 

(e)

Air/gas/fluid heating systems

40

 

 

(f)

Solar crop driers and systems

40

 

 

(g)

Solar refrigeration, cold storages and air conditioning

40

 

 

 

systems

 

 

 

(h)

Solar steels and desalination systems

40

 

 

(i)

Solar power generating systems

40

 

 

(j)

Solar  pumps  based  on  solar-thermal  and  solar-

40

 

 

 

photovoltaic conversion

 

 

 

(k)

Solar-photovoltaic modules and panels for water

40

 

 

 

pumping and other applications

 

 

 

(l)

Wind mills and any specially designed devices which run on wind mills installed on or after the 1st April,

40

 

 

 

2014

 

 

 

(m)

Any special devices including electric generators and

40

 

 

 

pumps running on wind energy installed on or after the 1st April, 2014

 

 

 

(n)

Biogas-plant and biogas-engines

40

 

 

(o)

Electrically  operated vehicles including battery

40

 

 

 

powered or fuel-cell powered vehicles

 

 

 

(p)

Agricultural and municipal waste conversion devices

40

 

 

 

producing energy

 

 

 

(q)

Equipment for utilising ocean waste and thermal

40

 

 

 

energy

 

 

 

(r)

Machinery and plant used in the manufacture of any

40

 

 

 

of the above sub-items

 

 

8

(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

40

 

 

 

lending libraries

 

IV

 

 

Ships

 

 

(1)

 

Ocean-going ships including dredgers, tugs, barges, survey

20

 

 

 

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

20

 

 

 

sub-item (3) below

 

 

(3)

 

Vessels ordinarily operating on inland waters being speed

20

 

 

 

boats [See Note 9 below]

 

 

PART B

INTANGIBLE ASSETS

 

S.No.

Block of assets

Depreciation allowance as percentage of written  down value

(1)

(2)

(3)

 

Know-how, patents, copyrights, trademarks, licences,

25

 

franchises or any other business or commercial rights of similar nature

 

 

Notes:

 

1

"Buildings" include roads, bridges, culverts, wells and tubewells.

2

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-third per cent of its total built-up floor area and shall include any such building in the factory premises.

3

In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in section 33(6), the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item 1 of PART A as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected. Where the structure is constructed or the work is done by way of extension of any such building, the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

4

Water treatment system includes system for desalination, demineralisation and purification of water.

5

"Electrical fittings" include electrical wiring, switches, sockets, other fittings and fans, etc.

6

?Commercial vehicle" means "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and "medium passenger motor vehicle" but does not include "maxi-cab", "motor-cab", "tractor" and "road-roller". The expressions "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle", "medium passenger motor vehicle", "maxi-cab", "motor-cab", "tractor" and "road-roller" shall have the meanings respectively assigned to them in section 2 of the Motor Vehicles Act, 1988  (59 of 1988).

7

"Computer software" means any computer program recorded on any disc, tape, perforated media or other information storage device.

8

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.

9

"Speed boat" means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometres 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.