Depreciation on sign board

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2016 Dear sir,
I want to know what is the depreciation rate for sign board
Neon Sign board & Glow sign Board as per Income tax Act
Thanks in advance

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 As per the Income Tax Act in India, neon sign boards and glow sign boards are typically classified under the category of "Furniture and Fittings" or "Other tangible assets not covered elsewhere" for the purpose of depreciation. Here are the applicable depreciation rates for these assets:

1. **Neon Sign Board**:
- Neon sign boards are generally classified under "Furniture and Fittings" if they are considered movable and can be removed without affecting the structure.
- The depreciation rate for "Furniture and Fittings" under the Income Tax Act is typically 10% per annum.

2. **Glow Sign Board**:
- Glow sign boards are also categorized under "Furniture and Fittings" or "Other tangible assets not covered elsewhere" depending on the nature of their installation and use.
- Similar to neon sign boards, the depreciation rate for glow sign boards would generally be 10% per annum under the Income Tax Act.

These rates are applicable assuming the assets are used for business purposes and are eligible for depreciation under the Income Tax rules. It's important to ensure that the classification and depreciation rates are applied correctly based on the specific nature and use of the sign boards in your business.