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Discussion > Income Tax > Tax queries >

Block of Assets

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Service

[ Scorecard : 196]
Posted On 16 November 2007 at 11:28 Report Abuse

For computation of Depreciation under Income Tax Act, there is an rate of 60% for Computers & Softwares. Does Servers, Printers, UPS,Scanners etc be classied under Computers?

Or only computer desktops, laptops & softwares are included in it?

Please clarify

 

 


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Late CA Sampat Jain
Chartered Accountant

[ Scorecard : 4717]
Posted On 16 November 2007 at 11:43

THERE IS NO DEFINITION GIVEN UNDER INCOME TAX ACT . BUT GENERALLY A COMPUTER CAN BE DEFINED AS FOLLOWS: A programmable machine. The two principal characteristics of a computer are: It responds to a specific set of instructions in a well-defined manner. It can execute a prerecorded list of instructions (a program). Modern computers are electronic and digital. The actual machinery -- wires, transistors, and circuits -- is called hardware; the instructions and data are called software. All general-purpose computers require the following hardware components: memory : Enables a computer to store, at least temporarily, data and programs. mass storage device : Allows a computer to permanently retain large amounts of data. Common mass storage devices include disk drives and tape drives. input device : Usually a keyboard and mouse, the input device is the conduit through which data and instructions enter a computer. output device : A display screen, printer, or other device that lets you see what the computer has accomplished. central processing unit (CPU): The heart of the computer, this is the component that actually executes instructions. In addition to these components, many others make it possible for the basic components to work together efficiently. For example, every computer requires a bus that transmits data from one part of the computer to another.




K R Ramesh
Service

[ Scorecard : 196]
Posted On 16 November 2007 at 11:56

Thanks for the reply. As per this the items which are falling under Computer Category would be 1. Desktop (Monitor + CPU) 2. Laptop 3. Servers Please correct me if I am wrong Rest of the items like * UPS * Printers * Scanners * Switches etc should be categories under Office Equipment with the depreciation rate of 15%. Please confirm Thanks



Late CA Sampat Jain
Chartered Accountant

[ Scorecard : 4717]
Posted On 16 November 2007 at 12:01

All general-purpose computers require the following hardware components: memory : Enables a computer to store, at least temporarily, data and programs. mass storage device : Allows a computer to permanently retain large amounts of data. Common mass storage devices include disk drives and tape drives. input device : Usually a keyboard and mouse, the input device is the conduit through which data and instructions enter a computer. output device : A display screen, printer, or other device that lets you see what the computer has accomplished. central processing unit (CPU): The heart of the computer, this is the component that actually executes instructions. In addition to these components, many others make it possible for the basic components to work together efficiently. For example, every computer requires a bus that transmits data from one part of the computer to another.



GARGS
CPA

[ Scorecard : 66]
Posted On 16 November 2007 at 12:13

Yes, all computers and computer accessories are included because of the fact that its definition uses the word "computer" and does not include specifically any item. Thus the definition is not an inclusive one Conclusion: Servers, Printers, UPS,Scanners etc. can be classified under computers.



K R Ramesh
Service

[ Scorecard : 196]
Posted On 19 November 2007 at 09:16

Thanks indeed all of you for the clarificiation Regards



K R Ramesh
Service

[ Scorecard : 196]
Posted On 04 January 2008 at 11:33

Dear Mr. Sampat Jain Once again on the clarification on "Computer". Is this defintion is acknowledged by ICAI or by I.Tax Dept. If yes, can you please provide me the link to that circular/notification/clarification. Many Thanks in Advance Regards Ramesh



(Guest)
Posted On 01 December 2008 at 17:47

what is block of assets




praveen
Chartered Accountant

[ Scorecard : 5538]
Posted On 01 December 2008 at 18:50

Block of Assets mean the assets which come under the same depreciation rates like 10% 15% 60%etc.



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