Classification & Depreciation Rate

I know a company they are showing it under intangible assets - Capitalised software and are amortising it in 5 years on months basis. Rate of Dep as per IT act is 25%.

It is a accepted practice.
 

thanks Mr.Ankit,

May I now what basic criteria to classify under intangible asset

this is a extract of Accounting policy of the comany for fixed asset

Expenditure on software and related implementation costs are capitalised where it is expected to provide enduring economic benefits and are amortised on a straight line basis over a period of five years.

thank you very much ankit.............