depreciation on library books

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CA Amit Jaiswal

CA Amit Jaiswal (Querist)
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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

Shudhanshu Agrawal (Expert)
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19 June 2010 As per Section 32 of Income Tax Act Books should be depreciated @ 100%

CA Amit Jaiswal

CA Amit Jaiswal (Querist)
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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

Shudhanshu Agrawal (Expert)
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19 June 2010 The rate will be 60% as per Rule 5 and Apendix I of Income Tax Rules

Aditya Maheshwari

Aditya Maheshwari (Expert)
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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

Shudhanshu Agrawal (Expert)
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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 Moreover in the schools books dont get outdated as quickly as in case of professional books.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

Aditya Maheshwari (Expert)
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19 June 2010 Didnt read library for schools. If it is for school then it is 60% only.