Depreciation rate as per income tax APPLICABLE

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This query is : Resolved

Daya (Querist)

15 March 2022 what is depreciation rate as per income tax
Mobile Phone,
Biometric Attendance Equipment
Cloud On tally
Car for official use.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

06 July 2024 As of the latest updates, here are the depreciation rates for different assets as per the Income Tax rules in India:

1. **Mobile Phone**: The depreciation rate for a mobile phone used for business purposes is 15% per annum. This falls under the category of "Plant and Machinery" as per Income Tax rules.

2. **Biometric Attendance Equipment**: Biometric attendance equipment is typically categorized under "Electronic Equipment" or "Office Equipment". The depreciation rate for such equipment is 40% per annum.

3. **Cloud on Tally**: Cloud computing expenses, including expenses on cloud-based software like Tally, are eligible for a depreciation rate of 60% per annum. This is classified under "Computer Software" as per Income Tax rules.

4. **Car for Official Use**: For a car used for official purposes, the depreciation rates are as follows:
- If acquired and put to use on or after 1st April 2020: 15% per annum.
- If acquired before 1st April 2020 but put to use on or after 1st April 2020: 30% per annum.
- If acquired before 1st April 2020 and put to use before that date: 15% per annum.

### Example Calculation:
For instance, if the cost of a Biometric Attendance Equipment is Rs. 1,00,000, the annual depreciation would be:
Annual Depreciation = Cost of Asset × Depreciation Rate
= Rs. 1,00,000 × 40%
= Rs. 40,000

These rates are as per the Income Tax Act and may be subject to changes or amendments over time. It's advisable to refer to the latest provisions and consult with a tax professional or accountant for specific depreciation calculations and compliance with tax laws.

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