Rate of depreciation

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C.A. Deepak Kakkar (Querist)
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14 July 2011 Deal All

pls help me on following:

software & hardware used in information technology industry will be depreciated at rate of plant & machinery (15%) or software(60%) or at some other special rate of depreciation??

Regards
Deepak

Praveen Maheshwari

Praveen Maheshwari (Expert)
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14 July 2011 software & hardware used in information technology industry will be depreciated @ 60% P.A.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 July 2011 they would be depreicated @ 60% only.

Computers including computer software (See Note 7 below this Table)

60

C.A. Deepak Kakkar

C.A. Deepak Kakkar (Querist)
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14 July 2011 Mr. Aditya

will it matter that computers are used in I.T. industry or any other type of industry..i have consulted with some other people & they suggested that it will be treated as plant & machinery for I.T. industry.

Pls clarify.

Praveen Maheshwari

Praveen Maheshwari (Expert)
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14 July 2011 No Mr. CA Deepak Kakkar it will not make any diffrence that where you are using Computer as per Income Tax Act, you can claim Depreciation @60% without any hesitation.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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14 July 2011 Computers themselves have been classified under the head plant & machinery in the depreciation schedule. So the deprecaition rate for use in any industry would not effect the depreciation rate to be charged on the same. So it would still be the same only. Also the rates prescribed are for an item and not for an industry.

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