Income tax depreciation rate on Drones ( unmanned aerial vehicles) and Robots

As per the Income Tax Act, 1961, the depreciation rates for assets like drones (unmanned aerial vehicles) and robotsare not specifically mentioned in the depreciation schedule provided under Rule 5 of the Income Tax Rules, 1962.

However, here's how they are typically treated in practice:

✅ 1. Drones (Unmanned Aerial Vehicles):

• Classification: Generally treated as "Computers including computer software" or "Plant and Machinery", depending on usage.

  • If used primarily for data capture, mapping, or tech-driven operations, professionals often classify them under Computers.

  • Otherwise, for general industrial or agricultural use, they are classified under Plant and Machinery.

• Depreciation Rate:

  • 40% (until AY 2017–18) for computers/software – now reduced.

  • 15% for Plant & Machinery (as applicable now).

✅ Safe approach: Use 15% depreciation rate under “Plant and Machinery” (Block 2 in depreciation schedule), unless you have technical backing to classify them as computer equipment.

✅ 2. Robots (Industrial/Service Robots):

• Classification: Usually classified as "Plant and Machinery".

• Depreciation Rate:

  • 15% (standard rate for general machinery and equipment).

🚫 No separate classification for robots exists in current Income Tax depreciation schedule.

📝 Summary Table:

⚠️ Note:

• Always support your classification with technical documentation, invoices, and usage descripttions to justify your depreciation claim.

• If your use-case fits into specific software automation, consider discussing with your tax auditor to explore a higher rate classification (e.g. 40% for computers – only in rare, specific cases).