5728722, 049 AM Income Tax Department Income Tax Department Government of India Rates of depreciation (for income-tax) AS APPLICABLE FROM THE ASSESSMENT YEAR 2003-04 ONWARDS nning them on hire, acquired or put to use on or after th htpsiwwuincametaxingia govin_layouts/15/iUmabillviewer aspx?9¥ Block of assets Depreciation allowance as pe reentage of written down valu e AYs 200] AY 2006] AY 2018 3-04 10 2| -07 to A| -19 onw 005-06 | ¥2017-| ards 18 I 2 3 4 PART A TANGIBLE ASSETS L BUILDING [See Notes 1 to 4 below the Table] (J) Buildings which are used mainly for residential purposes 5 5 5 except hotels and boarding houses (2) Buildings other than those used mainly for residential pu 10 10 10 poses and not covered by sub-items (1) above and (3) b clow (3) Buildings acquired on or after the Ist day of September, 100 | 100 40 2002 for installing machinery and plant forming part of water supply project or water treatment system and whi ch is put to use for the purpose of business of providing infra- structure facilities under clause (i) of sub-section (4) of section 80-1A. (4) Purely temporary erections such as wooden structures 100 | 100 40 FURNITURE AND FITTINGS Fumiture and fittings including electrical fittings [See Note 5 b 15 10 10 elow the Table] II. MACHINERY AND PLANT (J) Machinery and plant other than those covered by sub-it 25 15 15 ems (2), (3) and (8) below : [See Note 5A below the Ta ble] (2) (i) Motor cars, other than those used in a business of ru 20 15 15 = htipsshwwwincometaxindla govinvchars tablesidoprecialin rates hima. a95728122, 049 AM Income Tax Department € Ist day of April, 1990 except those covered under entr y Gi); Gi) Motor cars, other than those used in a business of runni ng them on hire, acquired on or after the 23rd day of Au gust, 2019 but before the Ist day of April, 2020 and is p ut to use before the Ist day of April, 2020, (3) ( Aeroplanes - Aeroengines Gi) (@) Motor buses, motor lorries and motor taxis used in a business of running them on hire other than those co vered under entry (b) (b) Motor buses, motor lorries and motor taxis used in a b usiness of running them on hire, acquired on or after th ¢ 23rd day of August, 2019 but before the Ist day of A pril, 2020 and is put to use before the Ist day of April, 2020. (iif) Commercial vehicle which is acquired by the assessee on or after the Ist day of October, 1998, but before the Ist day of April, 1999 and is put to use for any period before the Ist day of April, 1999 for the purposes of b usiness or profession in accordance with the third prov iso to clause (if) of sub-section (1) of section 32 [See N ote 6 below the Table] (iv) New commercial vehicle which is acquired on or after the Ist day of October, 1998, but before the Ist day of April, 1999 in replacement of condemned vehicle of 0 ver 15 years of age and is put to use for any period bef ore the Ist day of April, 1999 for the purposes of busin ess or profession in accordance with the third proviso t o clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table] (v) New commercial vehicle which is acquired on or after the Ist day of April, 1999 but before the Ist day of Apr il, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the Ist day of April, 2000 for the purposes of business or profession i n accordance with the second proviso to clause (ii) of s uub-section (1) of section 32 [See Note 6 below the Tab Ie] (vi) New commercial vehicle which is acquired on or after the Ist day of April, 2001 but before the Ist day of Apr il, 2002 and is put to use before the Ist day of April, 2 002 for the purposes of business or profession [See No te 6 below the Table] (via) New commercial vehicle which is acquired on or afte r the Ist day of January, 2009 but before the Ist day of ‘October, 2009 and is put to use before the Ist day of O ctober, 2009 for the purposes of business or profession [See paragraph 6 of the Notes below this Table] htpsiwwuincametaxingia govin_layouts/15/iUmabillviewer aspx?9¥ 40 40 40 60 60 50 40 60 60 50 40 40 40 40 40 = htipsshwwwincometaxindla govinvchars tablesidoprecialin rates hima. ane5128122, 949 AM Income Tax Department (vii) Moulds used in rubber and plastic goods factories 40 30 30 (viii) Air pollution control equipment, being— (a Electrostatic precipitation systems (b) Felt-filter systems (c) Dust collector systems 100 | 100 40 (@ Scrubber-counter current/venturi/packed bed/eycl onic scrubbers (e) Ash handling system and evacuation system {ix) Water pollution control equipment, being— » quip (@ Mechanical sereen systems (b) Aci or) ted detritus chambers (including air compress (©) Mechanically skimmed oil and grease removal sys tems (@ Chemical feed systems and flash mixing equipme nt (©) Mechanical flocculators and mechanical reactors (A Diffused air/mechanically aerated activated sludge systems (g) Aerated lagoon systems 100 | 100 40 (A) Biofilters (i) Methane-recovery anaerobie digester s; () Air floatation systems (& Air/steam stripping systems () Urea Hydrolysis systems (m) Marine outfall systems (n) Centrifuge for dewatering sludge (0) Rotating biological contractor or bio-dise (p) Ton exchange resin column (q) Activated carbon column (2) (a) Solidwaste control equipments being - caustic/lim e/chrome/mineral/cryolite recovery systems 100 | 100 40 (6) Solidwaste recycling and resource recovery syste ms htps:[Link]. govin!_layouts/15/iUmabillviewer aspx?palh=hlips:/[Link] govinvchars ablesidoprecialion rates. himak... 3/195728122, 049 AM Income Tax Department (xi) Machinery and plant, used in semi-conductor industry covering all integrated circuits (ICs) (excluding hybrid integrated circuits) ranging from small scale integratio n (SSI) to large scale integration/very large scale integr ation (LSI/VLSI) as also discrete semi-conductor devi ces such as diodes, transistors, thyristors, triacs, etc., ot her than those covered by entries (viii), (ix) and (x) of t his sub-item and sub-item (8) below (xia) Life saving medical equipment, being— (@) D.C. Defibrillators for internal use and pace make 15 (6) Haemodialysors (c) Heart lung machine (@) Cobalt Therapy Unit, (©) Colour Doppler (f) SPECT Gamma Camera (g) Vascular Angiography System including Digital s ubtraction Angiography (A) Ventilator used with anaesthesia apparatus (® Magnetic Resonance Imaging System (f) Surgical Laser [See Note 5B] (Ventilators other than those used with anaesthesia (D) Gamma knife (m) Bone Marrow Transplant Equipment including sil astic long standing intravenous catheters for chem otherapy (x) Fibreoptic endoscopes including Paediatric resect oscopelaudit resectoscope, Peritoneoscopes, Arth oscope, Microlaryngoscope, Fibreoptic Flexible N asal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchos cope and Video Oesophago Gastroscope, Strobose ope, Fibreoptic Flexible Oesophago Gastroscope (0) Laparoscope (single incision) (4 Containers made of glass or plastic used as re-fills (5) Computers including computer software [See note 7 bel ow the Table] (5) Machinery and plant, used in weaving, processing and g ‘arment sector of textile industry, which is purchased un, der TUES on or after the Ist day of April, 2001 but befo [Link] gv.in_layouts/15/iUmabilelviewer aspx?palh=hip:/[Link] ‘ablesideprecialion rales him&k. 40 40 50 60 40 60 50 40 40 40 40 ane5728122, 049 AM Income Tax Department re the Ist day of April, 2004 and is put to use before the Ist day of April, 2004 [See Note 8 below the Table] (7) Machinery and plant, acquired and installed on or after t he Ist day of September, 2002 in a water supply proj or a water treatment system and which is put to use for t he purpose of business of providing infrastructure facilit y under clause (i) of sub-section (4) of section 80-IA [S ‘ee Notes 4 and 9 below the Table] (8) ( Wooden parts used in artificial silk manufacturing ma chinery (i) Cinematograph films - bulbs of studio lights (iii) Match factories - Wooden match frames (iv) Mines and quarries (@ Tubs, winding ropes, haulage ropes and sand stow ing pipes (b) Safety lamps (v) Salt works - Salt pans, reservoirs and condensers, ete., made of earthy, sandy or clayey material or any other s imilar material (vi) Flour mills - Rollers (vii) Iron and steel industry - Rolling mill rolls (vili) Sugar works - Rollers (ix) Energy saving devices, being— A. Specialised boilers and furnaces: (a) Ignifluid/Aluidized bed boilers (6) Flameless furnaces and continuous pusher ty pe furnaces (c) Fluidized bed type heat treatment furnaces (d) High efficiency boilers (thermal efficiency hi gher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers) B. Instrumentation and monitoring system for monitor ing energy flows: (a) Automatic electrical load monitoring systems (b) Digital heat loss meters (©) Miero-processor based control systems (@ Infra-red thermography (e) Meters for measuring heat losses, fumnace oil flow, steam flow, electric energy and power f hitpstiwuincametaxingia gv.in_layouts/15/sUmabillviewer aspx?palhhip:/[Link] ‘ablesideprecialion rales him&k. 100 100 100 100 100 100 80 80 80 80 80 100 100 100 100 100 100 80 80 80 80 80 40 40 40 40 40 40 40 40 40 40 40 ene5128/22, 949 AM hitpsiwuincametaxingia gv.in_layouts/15/iUmabillviewer aspx?palh=hip:/[Link] ‘ablesideprecialion rates him&k. Income Tax Department actor meters () Maximum demand indicator and clamp on po ‘wer meters (g) Exhaust gases analyser (h) Fuel oil pump test bench C. Waste heat recovery equipment: (a) Economisers and feed water heaters (6) Recuperators and air pre-heaters, 80 (c) Heat pumps (@) Thermal energy wheel for high and low temp erature waste heat recovery D. Co-generation systems: (a) Back pressure pass out, controlled extraction, 80 extraction-cum-condensing turbines for co-ge neration along with pressure boilers (6) Vapour absorption refrigeration systems (c) Organic rankine cycle power systems (@) Low inlet pressure small steam turbines E, Electrical equipment: (a) Shunt capacitors and synchronous condenser systems (b) Automatic power cut off devices (relays) mo unted on individual motors (0) Automatic voltage controller (@) Power factor controller for AC motors (e) Solid state devices for controlling motor spee ds (A) Thermally energy-efficient stenters (which re quire 800 or less kilocalories of heat to evapo rate one kilogram of water) (g) Series compensation equipment (h) Flexible AC Transmission (FACT) dev Thyristor controlled series compensation equ ipment () Time of Day (ToD) energy meters () Equipment to establish transmission highwa s for National Power Grid to facilitate transfe 80 80 80 40 40 40 ene5128/22, 949 AM [Link] gv.in_layouts/15/iUmabilelviewer aspx?palh=hip:/[Link] ‘ablesideprecialion rales him&k. Income Tax Department + of surplus power of one region to the defici ent region (& Remote terminal units/intelligent electronic d vices, computer hardware/software, router/b ridges, other required equipment and associat ed communication systems for supervisory ¢ ontrol and data acquisition systems, energy m anagement systems and distribution manage ‘ment systems for power transmission system s (D Special energy meters for Availability Based Tariff (ABT) F Burmers: (a) 0 to 10 per cent excess air burners () Emulsion burners (c) Bumers using air with high pre-heat temperat ure (above 300°C) G. Other equipment: (a) Wet air oxidation equipment for recovery of chemicals and heat (b) Mechanical vapour recompressors (©) Thin fi m evaporators (d) Automatic micto-processor based load dema nd controllers (€) Coal based producer gas plants () Fluid drives and fluid couplings (g) Turbo charges/super-charges (i) Sealed radiation sources for radiation process ing plants (x) Gas cylinders including valves and regulators (xi) Glass manufacturing concerns - Direct fire glass melti ng furnaces (xié) Mineral oil concerns: (a) Plant used in field operations (above ground) distribution - Retumable packages (6) Plant used in field operations (below groun ¢), but not including kerbside pumps includin g underground tanks and fittings used in field operations (distribution) by mineral oil conce ms 80 80 80 80 80 80 80 60 60 60 40 40 40 40 40 ms5728122, 049 AM Income Tax Department (©) Oil wells not covered in clauses (a) and (b) (with effect from the assessment year 2016-1 7) (xiif) Renewal energy devices bei (q) Flat plate solar collectors (6) Concentrating and pipe type solar collectors (c) Solar cookers (@) Solar water heaters and systems (e) Air/gas/fluid heating systems (J Solar crop driers and systems Solar refrigeration, cold storages and air-con ditioning systems (g) (h) Solar steels and desalination systems (@ Solar power generating systems (J) Solar pumps based on solar-thermal and solar -photovoltaic conversion (8) Solar-photovoltaic modules and panels for w ater pumping and other applications () Windmills and any specially designed devices which run on wind-mills installed on or befor March 31, 2012 (m) Any special devices including electric gener ators and pumps running on wind energy inst alled on or before March 31, 2012 (n) Biogas plant and biogas engines (0) Electrically operated vehicles including batte ry powered or fuel-cell powered vehicles (p) Agricultural and municipal waste conversion devices producing energy (q) Equipment for utilising ocean waste and ther mal energy (7) Machinery and plant used in the manufacture of any of the above sub-items (9) ( Books owned by assesses carrying on a profession (a) Books, being annual publications (b) Books, other than those covered by entry (a) above (ii) Books owned by assessees carrying on business in r [Link].in_layouts/15/iUmabillviewer aspx?palh=hip:/[Link] ‘ablesideprecialion rales him&k. 80 100 60 100 80 100 60 100 40 40 40 40 ane5128122, 949 AM Income Tax Department unning lending libraries IV. SHIPS (1) Ocean-going ships including dredgers, tugs, barges, surv 25 20 20 ey launches and other similar ships used mainly for dre dging purposes and fishing vessels with wooden hull (2) Vessels ordinarily operating on inland waters, not covere 25 20 20 d by sub-item (3) below (3) Vessels ordinarily operating on inland waters being spee 25 20 20 d boats [See Note 10 below the Table] PART B INTANGIBLE ASSETS Know-how, patents, copyrights, trademarks, licences, franchises or a 25 25, 25 ny other business or commercial rights of similar nature not being go odwill of businesss of profession Noti 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. 4. In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in Explanation J of clause (ii) of sub-section (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I 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, ete, 5A, Rate of depreciation shall be 40% if conditions of Rule 5(2) are satisfied 5B. Applicable fiom the Assessment year 2004-05, 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 as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988), 7. "Computer software” means any computer programme recorded on any dise, tape, perforated media or other information storage device. 8. "TUFS" means Technology Upgradation Fund Scheme announced by the Government of India in the form of a Resolution of the Ministry of Textiles vide No. 28/1/99-CTI of 31-3-1999. 9, 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. 10, "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, ie, its bow will rise from the water. htps:[Link]. govin!_layouts/15/iUmabillviewer aspx?palh=hlips:/iwww incometaxindla govinvchars ablesideprecialion rates Mim&k... 9/195128122, 049 AM Income Tax Department Depreciation rates for power generating units (applicable from the assessment year 1998-99 (h) Batteries (H Underground cable including joint boxes and discomnectioned boxes hitpsiwwuincametaxingia gavin_layouts/15/sUmabilelvieweraspxpalhhipe/vwn incometaxindia. govinlcharls tablesideprecialion [Link] Class of assets Depreciat ion allow ance as p ercentage of actual cost (a) Plant and Machinery in generating stations including plant foundations —— (0 Hydro-electrie 34 (ii) Steam electric NHRS & Waste heat recovery Boilers/plants 7.84 (i) Diesel electric and Gas plant 8.24 () Cooling towers and circulating water systems 7.84 (©) Hydraulic works forming part of Hydro-electric system including — (i) Dams, spillways weirs, canals, reinforced concrete flumes and syphons 195 (ii) Reinforced concrete pipelines and surge tanks steel pipelines, sluice gates, steel 3.4 surge (tanks), hydraulic control valves and other hydraulic works. (@) Building and civil engineering works of permanent character, not mentioned above (i) Office & showrooms 3.02 (i) Containing Thermo-electric generating plant 7.84 (iif) Containing Hydro-electric generating plant 34 (iv) Temporary erection such as wooden structures 334 (v) Roads other than Kutcha roads 3.02 (vi) Others 3.02 (e) Transformers, transformer (Kiosk) sub-station equipment & other fixed apparatus (incl uding plant foundations) (i) Transformers (including foundations) having a rating of 100 kilo volt amperes a] 7.81 nd over (ii) Others 7.84 (f) Switchgear including cable connections 7.84 (g) Lightning arrestor (Station type 7.84 (ii) Pole type 12.77 (iif) Synchronous condenser 5.27 SR sonesi782, 949 AM Income Tax Depatment (ii) Cable duet system (Overhead lines ineluding supports : (i) Lines on fabricated steel operating at nominal voltages higher than 66 kilo volts (ii) Lines on steel supports operating at nominal voltages higher than 13.2 kilo volts but not exceeding 66 kilo volts (iif) Lines on steel or reinforced concrete supports (iv) Lines on treated wood supports () Meters (B) Self-propelled vehicles (D Air-conditioning plants (0 Static (ii) Portable (m) (i) Office furniture and fittings (ii) Office equipments (iii) Internal wiring including fittings and apparatus (iv) Street light fittings (n) Apparatus let on hire (i) Other than motors (ii) Motors (0) Communication equipment : (i) Radio and high frequency carrier system (if) Telephone lines and telephones (P) Any other assets not covered above 5.27 7.84 7.84 7.84 12.77 33.40 12.77 33.40 12.77 12.77 12.77 12.77 334 12.77 12.77 12.77 7.69 Depreciation under Companies Act, 2013 ' SCHEDULE IP (See section 123) USEFUL LIVES TO COMPUTE DEPRECIATION PART 'A' 1, Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value, The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. 2. For the purpose of this Schedule, the term depreciation includes amortisation. 3. Without prejudice to the foregoing provisions of paragraph 1,— 3A) The usefil life of an asset shall not be longer than the useful life specified in Part 'C' and the residual value of an asset shall not be more than five per cent of the original cost of the asset: hntpsiwwuincametaxingia govin_layouts/15/iUmabillviewer aspx?9 hips:[Link] tblesidepreciation rates him, nine5128122, 049 AM Income Tax Department Provided that where a company uses a useful life or residual value of the asset which is different from the above limits, justification for the difference shall be disclosed in its financial statement. (ii) For intangible assets, the provisions of the accounting standards applicable for the time being in force shall apply, except in case of intangible assets (Toll Roads) created under ‘Build, Operate and Transfer’ ‘Build, Own, Operate and Transfer’ or any other form of public private partnership route in case of road projects. Amortisation in such cases may be done as follows:— (3) Mode of amortisation Amortisation Amount Cost of Intangible Assets (A) Amortisation Amount = Actual Revenue for the year (B) Projected Revenue from Intangible Asset (till the end of the concessio n period) (C) (b) Meaning of particulars are as follows Cost of Intangible Assets = Cost incurred by the company in accordance with the accounting standar Aa ds, Actual Revenue for the ye = Actual revenue (Toll Charges) received during the accounting year. ar (B) Projected Revenue from I ~ Total projected revenue from the Intangible Assets as provided to the proj tangible Asset (C) ect lender at the time of financial closure/agreement. The amortisation amount or rate should ensure that the whole of the cost of the intangible asset is amortised over the concession period. Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the concession period. (©) Example:— Cost of creation of Intangible Assets Rs, 500 Crores Total period of Agreement 20 Years Time used for creation of Intangible Assets 2 Years Intangible Assets to be amortised in 18 Years Assuming that the Total revenue to be generated out of Intangible Assets over the period would be Rs. 600 Crores, in the following manner: — ‘Year No. Revenue (In Rs. Crores) Remarks Year I 5 Actual Year 2 75 Estimate® Year 3 10 Estimate® Year 4 12S Estimate* Year 5 17.5 Estimate* Year 6 20 Estimate® htps:[Link]. gov.in_layouts/15/siUmabillviewer aspx?palh=htips:/hwww incometaxindla govinichars ablesideprecialion rates him&.... 12/19,5728122, 049 AM Income Tax Department Year 7 23 Estimate* Year 8 7 Estimate* Year 9 31 Estimate* Year 10 34 Estimate* Year 11 38 Estimate* Year 12 4a Estimate* Year 13 46 Estimate* Year 14 50 Estimate* Year 15 53 Estimate* Year 16 7 Estimate* Year 17 60 Estimate* Year 18 67.5 Estimate* Total 600 ‘*" will be actual at the end of financial year. Based on this the charge for first year would be Rs. 4.16 Crore (approximately) (i.e. Rs. 5/Rs. 600 * Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16 Crore/Rs. 500 Crore x 100) is the amortisation rate for the first year. Where a company arrives at the amortisation amount in respect of the said Intangible Assets in accordance with any method as per the applicable Accounting Standards, it shall disclose the same.) PART 'B' 4. The useful life or residual value of any specific asset, as notified for accounting purposes by a Regulatory Authority constituted under an Act of Parliament or by the Central Government shall be applied in calculating the depreciation to be provided for such asset irrespective of the requirements of this Schedule. PART'C 5. Subject to Parts A and B above, the following are the useful lives of various tangible assets: Nature of assets Useful Life 1. Buildings [NESD] (@ Buildings (other than factory buildings) RCC Frame Structure 60 Years (b) Buildings (other than factory buildings) other than RCC Frame Structure 30 Years (©) Factory buildings -do- (d) Fences, wells, tube wells 5 Years (e) Others (including temporary structure, ete.) 3 Years IL, Bridges, culverts, bunders, ete, [N 30 Years IIL. Roads [NESD] (a) Carpeted roads hitpsiwwuincametaxingia govin_layouts/15/sUmabilevieweraspxpalhhipe/vwn incometaxindia. govinlcharls tablesideprecialion [Link]é. s3n95728122, 049 AM Income Tax Department (8) Carpeted Roads—RCC 10 Years (i) Carpeted Roads—other than RCC 5 Years (6) Non-carpeted roads 3 Years IV. Plant and Machinery () General rate applicable to plant and machinery not covered under spe cial plant and machinery (a) Plant and Machinery other than continuous process plant not covered} 15 Years under specific industries 4{(b) Continuous process plant for which no special rate has been prescri) 25 Years] bed under (ii) below [NESD] (ii) Special Plant and Machine (a) Plant and Machinery related to production and exhibition of Motion Picture Films 1. Cinematograph films—Machinery used in the production and e} 13 Years xhibition of cinematograph films, recording and reproducing equ ipments, developing machines, printing machines, editing machi nes, synchronizers and studio lights except bulbs 2. Projecting equipment for exhibition of films -do- (6) Plant and Machinery used in glass manufacturing, 1. Plant and Machinery except direct fire glass melting furnaces — Recuperative and regenerative glass melting furnaces 13 Years 2. Plant and Machinery except direct fire glass melting furnaces —] 8 Years Moulds [NESD] 3. Float Glass Melting Furnaces [NESD] 10 Years (c) Plant and Machinery used in mines and quarries—Portable under gro} 8 Years und machinery and earth moving machinery used in open cast mining (NESD] (@) Plant and Machinery used in Telecommunications [NESD] 1. Towers 18 Years 2. Telecom transteceivers, switching centres, transmission and other] — 13 Years network equipment 3. Telecom—Duets, Cables and optical fibre 18 Years 4, Satellites -do- (©) Plant and Machinery used in exploration, production and refining oil and gas [NESD] J. Refineries 25 Years 2. Oil and gas assets (including wells), processing plant and facilities |__ -do- htps:www incometaxineia. [Link]|_layouts/15/iUmabillviewer aspx?palh=htips:/hwwwincometaxindla govinvchars [Link]&.... 14/19,5728122, 049 AM Income Tax Department 3. Petrochemical Plant doe 4, Storage tanks and related equipment ~do- 5. Pipelines 30 Years 6. Drilling Rig -do- 7. Field operations (above ground) Portable boilers, drilling tools, we] 8 Years I-head tanks, ete. 8, Loggers -do- (f) Plant and Machinery used in generation, transmission and distribution of power [NESD] 1, Thermal/Gas/Combined Cycle Power Generation Plant 40 Yea 2, Hydro Power Generation Plant -do- 3. Nuclear Power Generation Plant -do- 4. Transmission lines, cables and other network assets -do- 5. Wind Power Generation Plant 22 Years 6, Electric Distribution Plant 35 Years 7. Gas Storage and Distribution Plant 30 Years 8, Water Distribution Plant including pipelines -do- (g) Plant and Machinery used in manufacture of steel J. Sinter Plant 20 Years 2. Blast Furnace -do- 3. Coke ovens -do- 4, Rolling mill in steel plant -do- 5. Basie oxygen Furnace Converter 25 Years (1) Plant and Machinery used in manufacture of non-ferrous metals 1. Metal pot line [NESD] 40 Years 2. Bauxite crushing and grinding section [NESD] -do- 3. Digester section [NESD] -do- 4, Turbine [NESD] -do- 5. Equipments for Calcination [NESD] -do- 6. Copper Smelter [NESD] ~do- 7. Roll Grinder 40 Years 8. Soaking Pit 30 Years 9, Annealing Furnace -do- htps:[Link]. [Link]!_layouts/15/iUmabillviewer aspx?palh=htips:/iwww incometaxindla govinvchars ablesidoprecialion rates. hima... 15/19,5728122, 049 AM Income Tax Department 10. Rolling Mills 11, Equipments for Scalping, Slitting, ete. [NESD] 12, Surface Miner, Ripper Dozer, etc., used in mines 13. Copper refining plant [NESD] ( Plant and Machinery used in medical and surgical operations [NES DI) 1. Electrical Machinery, X-ray and electrotherapeutic apparatus and a ecessories thereto, medical, diagnostic equipments, namely, Cat- Scan, Ultrasound Machines, ECG Monitors, ete. 2. Other Equipments. (/) Plant and Machinery used in manufacture of pharmaceuticals and che| micals [NESD] 1. Reactors 2. Distillation Columns 3. Drying equipments/Centrifuges and Decanters 4. Vessel/storage tanks (Plant and Machinery used in civil construction 1. Concreting, Crushing, Piling Equipments and Road Making Equip| ‘ments 2. Heavy Lift Equipments— Cranes with capacity of more than 100 tons Cranes with eap: y of less than 100 tons 3. Transmission line, Tunneling Equipments [NESD] 4. Earth-moving equipments 5. Others including Material Handling /Pipeline/Welding Equipment] s [NESD] (O Plant and Machinery used in salt works [NESD] V. Furniture and fittings [NESD] (8) General furniture and fittings (i) Furniture and fittings used in hotels, restaurants and boarding houses, schoo Is, colleges and other educational institutions, libraries; welfare centres; me ting halls, cinema houses; theatres and circuses; and furniture and fittings 1 et out on hire for use on the occasion of marriages and similar functions. VI. Motor Vehicles [NESD] 1. Motor eycles, scooters and other mopeds 2. Motor buses, motor lorries, motor cars and motor taxies used in a business of] running them on hire hitpssiwwuincametaxingia gavin_layouts/15/[Link]?palhipe/[Link]. govinvcharts tablesideprecialion [Link], -do- -do- 25 Years -do- 13 Years 15 Years 20 Years -do- -do- -do- 12 Years 20 Years 15 Years 10 Years 9 Years 12 Years 15 Years 10 Years 8 Years 10 Years 6 Years rene5728122, 049 AM Income Tax Department 3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire 4, Motor tractors, harvesting combines and heavy vehicles 5, Electrically operated vehicles including battery powered or fuel cell powered vehicles VIL. Ships [NESD] 1. Ocean-going ships (8) Bulk Carriers and liner vessels (i) Crude tankers, product carriers and easy chemical carriers with or wit hout conventional tank coatings (iti) Chemicals and Acid Carriers (@) With Stainless steel tanks (b) With other tanks (iv) Liquified gas carriers (vy) Conventional large passenger vessels which are used for cruise purpo se also (vi) Coastal service ships of all categories (vii) Offshore supply and support vessels (viii) Catamarans and other high speed passenger for ships or boats (ix) Drill ships (@) Hovercrafts (xi) Fishing vessels with wooden hull (xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes 2. Vessels ordinarily operating on inland waters— (8) Speed boats (ii) Other vessels VILL Aircrafts or Helicopters [NESD] IX. Railways sidings, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD] X. Ropeway structures [NESD] XI. Office equipment [NESD] XII. Computers and data processing units [NESD] (8) Servers and networks (ii) End user devices, such as, desktops, laptops, ete. hitpsiwwuincametaxingia gavin_layouts/15/sUmabilevieweraspx?palhipe/[Link]. gov nvcharts tablesideprecialion [Link] 8 Years -do- 8 Years 25 Years 20 Years 25 Years 20 Years 30 Years -do- -do- 20 Years -do- 25 Years 15 Years 10 Years 14 Years 13 Years 28 Years 20 Years 15 Years 15 Years 5 Years 6 Years 3 Years we5728122, 049 AM Income Tax Department XIII. Laboratory equipment [NESD] (8) General laboratory equipment 10 Years (ii) Laboratory equipments used in educational institutions 5 Years XIV, Electrical Installations and Equipment [NESD] 10 years XY. Hydraulic works, pipelines and sluices [NESD] 15 Years Notes. 1. "Factory buildings" does not include offices, godowns, staff quarters. 2. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed. The following information shall also be disclosed in the accounts, namely:— (® depreciation methods used; and (ii) the useful lives of the assets for computing depreci specified in the Schedule. 4, Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately. 5. Speer jon, if they are different from the life 6. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period 7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date— (a) shall be depreciated over the remaining useful life of the asset as per this Schedule; (6) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil. 8. "Continuous process plant" means a plant which is required and designed to operate for twenty-four hours a day. T. Comesponds to Schedule XIV of the 1956 Act. 2. Enforced with effect from 1-4-2014. 3. Substituted for clauses (i) to (iif) vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, wef. 1-4-2014, Prior to their substitution, clauses (i) to (iii) read as under : "(@_ In case of such class of companies, as may be prescribed and whose financial statements comply with the accounting standards prescribed for such class of companies under section 133 the useful life of an asset shall not normally be different from the useful life and the dual value shall not be different from that as indicated in Part C, provided that if such a company uses a useful life or residual value which is different from the useful life or residual value indicated therein, it shall disclose the justification for the same. htps:www incometaxineia. govin)_layouts/15/siUmabillviewer aspx?palh=htips:/hwww incometaxindla govinvchars ablesideprecialion rates him&.... 18/19,5128122, 049 AM Income Tax Department (i) _In respect of other companies the useful life of an asset shall not be longer than the useful life and the residual value shall not be higher than that prescribed in Part C. (iii) For intangible assets, the provisions of the Accounting Standards mentioned under sub-para (i) or (i), as applicable, shall apply." 4, Substituted vide Notification No, GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, wef I+ 4-2014. Prior to its substitution, clause (b) read as under : "(b) Continuous process plant for which no special rate has been prescribed under (ii) bel 8 Year ‘ow [NESD] s" 5. Omitted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4- 2014. Prior to its omission, Paragraph 5 read as under : Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset.” [As amended by Finance Act, 2022] hntpsiwwuincametaxingia govin_layouts/15/iUmabillviewer aspx?9 hips:[Link] tblesidepreciation rates him, rene