depreciation on library books

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(Querist)


19 June 2010

what is the rate of depreciation on library books in case of a school as per Income tax Act,1961 ?

Shudhanshu Agrawal (Expert)


19 June 2010

As per Section 32 of Income Tax Act Books should be depreciated @ 100%

CA Amit Jaiswal (Querist)


19 June 2010

this is only in case of assessee engaged in the business of lending books and in case of annual publications.

Is there any seperate provision in case of schools

Shudhanshu Agrawal (Expert)


19 June 2010

The rate will be 60% as per Rule 5 and Apendix I of Income Tax Rules

Aditya Maheshwari (Expert)


19 June 2010

(9) (i) Books owned by assessees carrying on a profession—




(a) Books, being annual publications


100

(b) Books, other than those covered by entry (a) above


60

(ii) Books owned by assessees carrying on business in running lending libraries


100

So ur rate is also 100%

Shudhanshu Agrawal (Expert)


19 June 2010

I dont thing assessee here is running the business of lending the books. Moreover in the schools books dont get outdated as quickly as in case of professional books. So according to me as they are academic books so rate shall be 60% instead of 100%

Aditya Maheshwari (Expert)


19 June 2010

Didnt read library for schools. If it is for school then it is 60% only.



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