Allowance of depreciation on motor vehicles owned and used by tour operators and travel agents in the business of running these vehicles on hire for tourists - Income Tax - 622/1992

Allowance of depreciation on motor vehicles owned and used by tour operators and travel agents in the business of running these vehicles on hire for tourists Circular No. 622 Dated 6/1/1992 Circular No. 609, dated 29th July, 1991 (See [1991] 191 ITR (St.) 1), clarified, inter alia, that the higher rate of depreciation under sub-item (2)(ii) of item III of Appendix I of the Income-tax Rules, 1962, will be allowed on motor vans also if they are used for providing transport services to tourists. 2. Vide Notification No. S.O. 467(E), dated 24th July, 1991 (See [1991] 190 ITR (St.) 323), the rate of depreciation in sub-item (2)(ii) of item III of Appendix I to the Income-tax Rules, 1962, has been changed to 40 per cent. from the earlier figure of 50 per cent. 3. In view of the above, the figure of 50 per cent. occurring in the third line of para 3 of Circular No. 609, dated 29th July, 1991 (See [1991] 191 ITR (St.) 1), may be read as 40 per cent. (Sd.) Nishi Nair, Under Secretary to the Government of India.