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Depreciation Rates as Per Income Tax Act in FY 24-25

What Are the Depreciation Rates As Per Income Tax Act?

 

Take a look at the depreciation rate chart as mentioned below:

Part A: Tangible Assets

Class of Assets

Types of Assets

Depreciation Rates (Expressed as Percentage of WDV or Written Down Value)

Buildings

-

-

1

Residential buildings except for boarding houses and hotels

5%

2

Buildings used other than residential purposes and are not mentioned in (1) and (3)

10%

3

Buildings owned on or after 1st September 2002, to install plant and machinery for water supply and utilised for providing infrastructural facilities as specified under Section section 80-IA(4)(i)

40%

4

Temporary buildings like wooden constructions

40%

Fittings and Furniture

-

-

1

Fittings such as electrical fittings and other fittings and furniture

10%

Plant and Machinery

-

-

1

Plant and machinery other than those mentioned in (8), (3), and (2)

15%

2(i)

Motor cars apart from the ones utilised for driving them on hire; acquired or put to use on or after 1st April 1990, excluding those mentioned in section (ii) below

15%

2(ii)

Motor cars apart from the ones utilised for driving them on hire; received on or after 23rd August 2019, and before 1st April 2020, and put to use before 1st April 2020

30%

3(i)

Aeroplanes, Aero engines

40%

3(ii)(b)

Motor lorries, buses and taxis utilised for driving them on hire, received on or after the 23rd August 2019 and before 1st April 2020 and put to use before 1st April 2020

45%

3(iii)

Commercial vehicles received on or after 1st October 1998 and before 1st April 1999 and put to use before 1st April 1999 for business or occupation as per the third proviso of Section 32(1)(ii)

40%

3(iv)

New commercial vehicles received on or after 1st October 1998 and before 1st April 1999, as a replacement of condemned vehicle of more than 15 years and is put to use before 1st April 1999 for business or occupation as per the third proviso Section 32(1)(ii)

40%

3(v)

New commercial vehicles received on or after 1st April 1999 and before 1st April 2000, as a replacement of condemned vehicle of more than 15 years and is put to use before 1st April 2000 for business or occupation as per the second proviso of Section 32(1)(ii)

40%

3(vi)

New commercial vehicles received on or after the 1st April 2002 and before the 1st April 2002 and put to use before the 1st day of april 2002 for business or other occupation

40%

3(vi)(a)

New commercial vehicles received on or after 1st January 2009 and before 1st October 2009 and are put to use before 1st October 2009 for business and other occupation

40%

3(vii)

Moulds used in plastic and rubber goods factory

30%

3(viii)

Air pollution control machines such as electrostatic precipitation systems, felt-filter systems, scrubber-counter current/packed bed/venturi/cyclonic scrubbers, ash handling system and evacuation system

40%

3(ix)

Water pollution control machines such as mechanical screen systems, mechanical skimmed oil and grease removal systems, aerated detritus chambers (including air compressor), chemical feed systems, flash mixing equipment, etc.

40%

3(x)

Solid waste control machines such as chrome/mineral/caustic/lime/cryolite recovery systems and solid waste resource and recycling recovery systems

40%

3(xi)

Plant and machinery utilised for the semiconductor industry, including all integrated circuits other than hybrid integrated circuits. This covers from large scale integration/very large scale integration to small scale integration and discrete semiconductor equipment, except mentioned in (x), (ix), (viii) of this subsection and section 8

30%

3(ix)(a)

Life-saving medical machines such as heart and lung machines, haemodialysis, colour doppler, cobalt therapy unit, etc.

40%

4

Glass and plastic containers which are utilised as refills; computers and also cover computer software

40%

5

Plant and machinery utilised in processing, weaving, garment sector of the textile industry, bought under TUFs on or after the 1st April 2001 and before 1st April 2004 and is utilised before 1st April 2004

40%

6

Plant and machinery received and installed on or after 1st September 2002 in a project of water supply utilised for providing infrastructural facility as specified under Section 80-IA(4)(i)

40%

7

Wooden parts utilised in artificial silk manufacturing machines, cinematograph films, match factories, quarries and mines, flour mills, salt and sugar works, iron and steel industry

40%

8

Energy-saving equipment such as specialised boilers and furnaces, waste heat recovery machines, instrumentation and monitoring system, cogeneration system, electrical device, burners, other devices such as thin-film evaporators, mechanical vapour re-compressors, renewal energy equipment In the case of mineral oil concerns, it covers plants utilised for operations in the field (above ground distribution). Plants utilised for operations in fields (below ground) covering fittings and underground tanks and not kerbside pumps

40%

8 (xii(c))

Oil wells not mentioned above under the section mineral oil concerns (came into effect from AY 2016-17)

15%

9 (i) and (ii)

Books, including annual publications and others and books for operating book lending libraries

40%

Ships

-

-

1, 2 and 3

Ocean-going ships utilised for dredging and fishing vessels along with wooden hulls, vessels functioning in inland waters and not mentioned in the items under section 3, speed boats

20%

Part B: Intangible Assets

1 Patents, copyrights, trademarks, franchises, licences, know-how, or other commercial rights 25%

Note: These depreciation rates as per the Income Tax Act are applicable from the assessment year of 2021-2022. 

(Source)

What Is Written-Down Value?

What Are the Methods to Compute Depreciation?

What Are the Conditions to Claim Depreciation on an Asset?

FAQs about the Depreciation Rates as Per Income Tax Act