THE FIFTEENTH SCHEDULE
DEPRECIATION
[See section 36]
1. The allowance under sub-section (1) of section 36 in respect of depreciation of any block of assets, specified in column (3) of the Table below, shall be calculated at the percentages, specified in corresponding entry in column (4) of the said Table, on the written down value of such block of assets as are used for the purposes of the business of the assessee at any time during the financial year.
TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE
|
Sr. No. |
Class of assets |
Block of assets |
Depreciation allowance as percentage of written down value |
|
(1) |
(2) |
(3) |
(4) |
|
I. |
Building |
(1) Buildings which are used mainly for residential purposes |
5 |
|
|
|
(2) Buildings which are purely temporary erections such as wooden structures |
100 |
|
|
|
(3) Buildings used as, or for,- |
|
|
|
|
(i) hotels or boarding houses |
|
|
|
|
(ii) railway station |
|
|
|
|
(iii) airport |
|
|
|
|
(iv) sea port, or |
|
|
|
|
(v) bus terminal |
15 |
|
|
|
(4) Any other building |
10 |
|
II |
Furniture and fittings |
Furniture and fittings including electrical fittings |
10 |
|
III |
Vehicles |
(1) Motor buses, motor lorrys and motor cars, used in a business of running them on hire |
30 |
|
|
|
(2) Any other Motor bus, motor lorry or motor car |
15 |
|
IV |
Aeroplanes |
Aeroplanes including aeroengines |
40 |
|
V |
Rails |
(1) Engines, coaches and wagons |
40 |
|
VI |
Ships |
(2) Rolling stock |
15 |
|
|
|
(1) Ocean-going vessels |
20 |
|
|
|
(2) Speed boats ordinarily operating on inland waters |
20 |
|
|
|
(3) Any other vessel ordinarily operating on inland waters |
20 |
|
VII |
Books |
(1) Annual publications used for carrying out a profession |
100 |
|
|
|
(2) Any other book used for carrying out a profession |
60 |
|
|
|
(3) Book used for carrying out a business of running lending libraries |
100 |
|
|
|
(4) Any other book |
25 |
|
VIII |
Machinery and Plant |
(1) Moulds used in rubber and plastic goods factories |
30 |
|
|
|
(2) Air pollution control equipment |
100 |
|
|
|
(3) Water pollution control equipment |
100 |
|
|
|
(4) Solid waste control equipment |
100 |
|
|
|
(5) Life saving medical equipment |
40 |
|
|
|
(6) Containers made of glass, or plastic, used as refills |
50 |
|
|
|
(7) Computers including computer software |
60 |
|
|
|
(8) Energy saving devices |
80 |
|
|
|
(9) Renewable energy devices |
80 |
|
|
|
(10) Machinery and plant, used in semiconductor industry |
30 |
|
|
|
(11) Wooden parts used in artificial silks manufacturing machinery |
100 |
|
|
|
(12) Bulbs of studio lights used for cinematograph films |
100 |
|
|
|
(13) Wooden match frames used in match factories |
100 |
|
|
|
(14) Tubs, winding ropes, haulage ropes, sand stowing pipes and safety lamps used in mines and quarries |
100 |
|
|
|
(15) Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material, used in salt works |
100 |
|
|
|
(16) Rollers used in flour mills or sugar works |
80 |
|
|
|
(17) Rolling mill rolls used in Iron and steel industry |
80 |
|
|
|
(18) Gas cylinders including valves and regulators |
60 |
|
|
|
(19) Glass manufacturing concerns Direct fire glass melting furnaces |
60 |
|
|
|
(20) Returnable packages used in field operations (above ground) distribution by petroleum or natural gas concerns |
60 |
|
|
|
(21) Plant used in field operations (below ground) by petroleum or natural gas concerns |
60 |
|
|
|
(22) Any other machinery or plant |
15 |
|
(IX) |
Scientific research assets |
All assets, other than land, used for scientific research |
100 |
|
(X) |
Family planning asset |
All assets used by a company for the purpose of promoting family planning. |
25 |
|
(XA) |
Animals |
Animals |
0 |
|
(XI) |
Intangible assets |
(1) Any right, by way of licence or franchise, to operate a business or to use a know-how, patent, copyright, trademark or any other business or commercial right of similar nature |
25 |
|
|
|
(2) Prescribed preliminary expenditure incurred
(a) before the commencement of the business; or |
25 |
|
|
|
(b) in connection with the extension of the business; or |
|
|
|
|
(c) in connection with the setting up of new business |
25 |
|
|
|
(3) Asset or project constructed, erected or set up by the assessee if,- |
|
|
|
|
(a) benefit or advantage arises to the assessee over a fixed period not exceeding ten years; and |
|
|
|
|
(b) asset is not owned by the assessee. |
20 |
|
|
|
(4) Asset or project constructed, erected or set up by the assessee if,- |
|
|
|
|
(a) benefit or advantage arises to the assessee over a fixed period exceeding ten years; and |
|
|
|
|
(b) asset is not owned by the assessee. |
15 |
|
(XII) |
Deferred revenue expenditure |
(1) Non-compete fee |
25 |
|
|
|
(2) Premium for obtaining any asset on lease or rent |
25 |
|
|
|
(3) Amount paid to an employee in connection with his volunatary retirement in accordance with any scheme of voluntary retirement. |
25 |
|
|
|
(4) Expenditure incurred by an Indian company wholly and exclusively for the purposes of business reorganisation |
25 |
|
|
|
(5) Expenditure incurred by a person resident in India wholly and exclusively on any operations relating to prospecting for any mineral or the development of a mine or other natural deposit of any mineral, to the extent prescribed |
15 |
2. No depreciation shall be allowed in respect of any machinery, or plant, if the actual cost thereof is allowed as a deduction in one or more years.
3. The deduction under section 35 in respect of an asset, acquired by the assessee during the financial year and put to use for the purposes of business for a period of less than one hundred and eighty days in that financial year, shall be restricted to fifty per cent of the amount calculated at the percentage prescribed for the block of assets in which the asset falls, in the Table above.
4. The depreciation shall be hundred per cent. of the adjusted written down value of the block of assets referred to in the class of assets at serial number (XI) and (XII) of the Table, if the adjusted written down value of the block of assets is hundred thousand rupees or less.
5. In respect of any structure, or work, by way of renovation or improvement in, or in relation to, a building referred to in clause (b) of sub-section (2) of section 34, the percentage to be applied will be the percentage specified in any sub-item of the block of assets in serial number I of Table above, as may be appropriate to the class of building in, or in relation to, which the renovation or improvement is effected.
6. In respect of any structure constructed, or work done, by way of extension of any building referred to in clause (b) of sub-section (2) of section 34, the percentage to be applied will be the percentage specified in any sub-item of the block of assets in serial number I of the Table above, as would be appropriate, as if the structure, or work, constituted a separate building.
7. For the purposes of this Schedule, -
(a) "Buildings" shall include roads, bridges, culverts, wells and tubewells;
(b) 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;
(c) "Infrastructure industry asset" shall include water treatment system for desalination, demineralisation and purification of water. as well as pipes needed for delivery from the source of supply of raw water to the plant and from the plant to the storage facility;
(d) "Electrical fittings" shall include electrical wiring, switches, sockets and other fittings and fans;
(e) "Computer software" shall mean any computer programme recorded on any disc, tape, perforated media or other information storage device;
(f) "Speed boat" shall mean 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, i.e., its bow will rise from the water;
(g) "Ocean going ships" shall include dredgers, tugs, barges, survey launches, other similar ships used mainly for dredging purposes and fishing vessels with wooden hull;
(h) "Air pollution control equipment" shall mean -
(i) Electrostatic precipitation systems;
(ii) Felt-filter systems;
(iii) Dust collector systems;
(iv) Scrubber-counter current/venturi/packed bed/cyclonic scrubbers; and
(v) Ash handling system and evacuation system.
(i) "Water pollution control equipment" shall mean -
(i) Mechanical screen systems;
(ii) Aerated detritus chambers (including air compressor);
(iii) Mechanically skimmed oil and grease removal systems;
(iv) Chemical feed systems and flash mixing equipment;
(v) Mechanical flocculators and mechanical reactors;
(vi) Diffused air/mechanically aerated activated sludge systems;
(vii) Aerated lagoon systems;
(viii) Biofilters;
(ix) Methane-recovery anaerobic digester systems;
(x) Air floatation systems;
(xi) Air/steam stripping systems;
(xii) Urea Hydrolysis systems;
(xiii) Marine outfall systems;
(xiv) Centrifuge for dewatering sludge;
(xv) Rotating biological contractor or bio-disc;
(xvi) Ion exchange resin column; and
(xvii) Activated carbon column.
(j) "Solidwaste control equipments" shall mean -
(i) caustic/lime/chrome/mineral/ cryolite recovery systems; and
(ii) Solidwaste recycling and resource recovery systems.
(k) "Life saving medical equipment" shall mean -
(i) D.C. Defibrillators for internal use and pace makers;
(ii) Haemodialysors;
(iii) Heart lung machine;
(iv) Cobalt Therapy Unit;
(v) Colour Doppler;
(vi) SPECT Gamma Camera;
(vii) Vascular Angiography System including Digital substraction Angiography;
(viii) Ventilator used with anaesthesia apparatus;
(ix) Magnetic Resonance Imaging System;
(x) Surgical Laser;
(xi) Ventilators other than those used with anaesthesia;
(xii)Gamma knife;
(xiii) Bone Marrow Transplant Equipment including silastic long standing intravenous catheters for chemotheraphy;
(xiv) 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, Fibreoptic Flexible Oesophago gastroscope; or
(xv) Laparoscope (single incision);
(l) "Energy saving device" shall mean -
(i) Specialised boilers and furnaces, being-
(A) Ignifluid/fluidized bed boilers;
(B) Flameless furnaces and continuous pusher type furnaces;
(C) Fluidized bed type heat treatment furnaces;or
(D) High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas fired boilers);
(ii) Instrumentation and monitoring system for monitoring energy flows, being-
(A) Automatic electrical load monitoring systems;
(B) Digital heat loss meters;
(C) Micro-processor based control systems;
(D) Infra-red thermography;
(E) Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters;
(F) Maximum demand indicator and clamp on power meters;
(G) Exhaust gases analyzer;or
(H) Fuel oil pump test bench;
(iii) Waste heat recovery equipment, being -
(A) Economisers and feed water heaters;
(B) Recuperators and air pre-heaters;
(C) Heat pumps;or
(D) Thermal energy wheel for high and low temperature waste heat recovery;
(iv) Co-generation systems, being-
(A) Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers;
(B) Vapour absorption refrigeration systems;
(C) Organic rankine cycle power systems;or
(D) Low inlet pressure small steam turbines;
(v) Electrical equipment, being -
(A) Shunt capacitors and synchronous condenser systems;
(B) Automatic power cut off devices (relays) mounted on individual motors;
(C) Automatic voltage controller;
(D) Power factor controller for AC motors;
(E) Solid state devices for controlling motor speeds;
(F) Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water);
(G) Series compensation equipment;
(H) Flexible AC Transmission (FACT) devices - Thyristor controlled series compensation equipment;
(I) Time of Day (ToD) energy meters;
(J) Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient 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 transmission systems;or
(L) Special energy meters for Availability Based Tariff (ABT);
(vi) Burners, being -
(A) 0 to 10 per cent excess air burners;
(B) Emulsion burners; or
(C) Burners using air with high pre-heat temperature (above 300°C); and
(vii) Other energy saving device, being -
(A) Wet air oxidation equipment for recovery of chemicals and heat;
(B) Mechanical vapour recompressors;
(C) Thin film evaporators;
(D) Automatic micro-processor based load demand controllers;
(E) Coal based producer gas plants;
(F) Fluid drives and fluid couplings;
(G) Turbo charges/super-charges;or
(H) Sealed radiation sources for radiation processing plants.
(m) "Renewal energy device" shall mean -
(i) Flat plate solar collectors;
(ii) Concentrating and pipe type solar collectors;
(iii) Solar cookers;
(iv) Solar water heaters and systems;
(v) Air/gas/fluid heating systems;
(vi) Solar crop driers and systems;
(vii) Solar refrigeration, cold storages and air conditioning systems;
(viii) Solar steels and desalination systems;
(ix) Solar power generating systems;
(x) Solar pumps based on solar-thermal and solar-photovoltaic conversion;
(xi) Solar-photovoltaic modules and panels for water pumping and other applications;
(xii) Wind mills and any specially designed devices which run on wind mills;
(xiii) Any special devices including electric generators and pumps running on wind energy;
(xiv)Biogas-plant and biogas-engines;
(xv) Electrically operated vehicles including battery powered or fuel-cell powered vehicles;
(xvi) Agricultural and municipal waste conversion devices producing energy; (xvii)Equipment for utilising ocean waste and thermal energy;or
(xviii) Machinery and plant used in the manufacture of any of the above sub-items. (n)"Machinery and plant used in semi-conductor industry" shall mean machinery and plant used in semiconductor 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
(i) air pollution control equipment;
(ii) water pollution control equipment;
(iii) solid waste control equipment;
(iv) wooden parts used in artificial silks manufacturing machinery;
(v) bulbs of studio lights used for cinematograph films;
(vi) wooden match frames used in match factories; (vii)tubs, winding ropes, haulage ropes, sand stowing pipes and safety lamps used in mines and quarries; and
(viii) salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material, used in salt works.
