Rate of depreciation on higher sales
This query is : Resolved
preet prakash
(Querist)
08 January 2016
Hi all
what is the rate of Depreciation on higher purchase under Co's & IT Act???????
i am leasing the Energy saving products to a Bank.
thnx
preet
what is the rate of Depreciation on higher purchase under Co's & IT Act???????
i am leasing the Energy saving products to a Bank.
thnx
preet
Arpit Shah
(Expert)
08 January 2016
https://taxguru.in/company-law/depreciation-rate-chart-as-per-companies-act-2013-with-related-law.html
preet prakash
(Querist)
08 January 2016
Hi ........ thnx for replying. i want the rate of depreciation on charge on higher purchase
kindly reply if u can
thnx
preet
kindly reply if u can
thnx
preet
19 July 2025
Depreciation on Assets Acquired on Hire Purchase
Yes, you can claim depreciation on assets purchased on hire purchase, but there are some conditions:
✅ Who Can Claim Depreciation?
The hirer (you) can claim depreciation only if you have acquired possession and use of the asset, even if full ownership transfers only after all installments are paid.
Courts and tax authorities generally allow depreciation to the hirer from the date of delivery and use, not from the date of final payment.
🧮 At What Rate?
The rate of depreciation depends on the type of asset, not the mode of payment.
So, standard depreciation rates under the Income Tax Act apply, even for hire purchase assets.
Common Examples:
Asset Type WDV Rate (as per Income Tax Rules)
Computers/Laptops 40%
Motor Vehicles 15% (or 30% if acquired before a certain date and used in business)
Plant & Machinery 15%
Furniture & Fixtures 10%
Yes, you can claim depreciation on assets purchased on hire purchase, but there are some conditions:
✅ Who Can Claim Depreciation?
The hirer (you) can claim depreciation only if you have acquired possession and use of the asset, even if full ownership transfers only after all installments are paid.
Courts and tax authorities generally allow depreciation to the hirer from the date of delivery and use, not from the date of final payment.
🧮 At What Rate?
The rate of depreciation depends on the type of asset, not the mode of payment.
So, standard depreciation rates under the Income Tax Act apply, even for hire purchase assets.
Common Examples:
Asset Type WDV Rate (as per Income Tax Rules)
Computers/Laptops 40%
Motor Vehicles 15% (or 30% if acquired before a certain date and used in business)
Plant & Machinery 15%
Furniture & Fixtures 10%
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