Rate Of Depreciation As Per Income Tax Act

         AS APPLICABLE FROM THE ASSESSMENT YEAR 1988-89 ONWARDS

------------------------------------------------------------------------
                   Block of Assets               Depreciation allowance
                   (See Para 48.3-3)             as percentage of 
                                                 written down value
------------------------------------------------------------------------
                         1                           		     2
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A. TANGIBLE ASSETS
1. BUILDING (see Notes 1 to 4 below the table)
   (1) Buildings which are used mainly for
       residential  purposes except hotels 
       and boarding houses                                 		5
   (2) Buildings other than those used mainly for
       residential purposes and not covered
       by sub items (1) above and(3) below                  	10
   (3) Buildings acquired on or after the 1st day 
       of September, 2002for installing machinery           	100
       and plant forming part of water supply project
       or water treatment system ,and which is put to 
       use for the purpose of business of providing
       infrastructure facilities under clause 
      (i)of subsection (4) of section 80-IA
   (4) Purely temporary erections such as wooden
       structures                                          		100

2. FURNITURE AND FITTING
       Furniture and fittings including electric fittings    	15 
       (See Notes 5 below the Table)

3. MACHINERY AND PLANT
   (1) Machinery and plant other than those covered
       by sub-items(2),(3)and (8) below                  		 25
   (2) Motor cars,other than those used in a business
       of running them on hire, acquired or put to use		 20
 	 on or after Ist day of April, 1990                  	
   (3) (i) Aerplanes - Aeroengines                         

       (ii) Motor buses, motor lorries and motor taxis
            used in a business of running them on hire      	 40

      (iii) Commercial vehicle,which is acquired by the
            assessee on or after the 1st day of October,
            1998 but before the 1st day of April,1999
            and is put to use for any period before the
            1st day of April,1999 for the purposes of	 40
            business or profession in accordance with
            the third proviso to clause (ii) of sub-
            section(I)of section 32(See Notes 6 below
the Table)                      

      (iv) 	New Commercial vehicle which is acquired on
            or after the 1st day of October,1998 but
            before the 1st day of April,1999 in replace-
            ment of condemned vehicle of over 15 years
            of age and is put to use for any period
            before the 1st day of April,1999 for the
purposes of business or profession in accord-				             ance with the third proviso to clause(ii) of	     60
            sub-section (I) of section 32
(See Note 6 below the Table)   				               	

      (v) 	New commercial vehicle which is acquired on
            or after the 1st day of April,1999 but before
            the 1st day of April,2000 in replacement of
            condemned vehicle of over 15 years of age and
            is put to use before the 1st day of April,2000
            for the purposes of business or profession in
            accordance with the second proviso to clause
            (ii) of sub-section (I) of section 32
(See Note 6 below the Table)             			   60   

	(vi) 	New commercial vehicle which is acquired on
            or after the 1st day of April,2001 but before
            the 1st day of April,2002 and is put to use		
before the 1st day of April,2002 for the purposes	   50
of business or profession 
(See Note 6 below the Table)             			 

      (vii) Moulds used in rubber and plastic goods
            factories     		                         	    40

      (viii)Air pollution control equipments, being
            (a) Electrostatic precipitation systems,
            (b) Felt-filter systems,  		   			     80
            (c) Dust collector systems
            (d) Scrubber-counter current/venturi/packed-
                bed/cyclonic scrubbers
            (e) Ash handling system and evacuation system
                
        (v) Water pollution control equipments, being
            (a) Mechanical screen systems,
            (b) Aerated detritus chambers (including air
                compressor),
            (c) Mechanically skimmed oil and grease removal
                systems,
            (d) Chemical feed systems and flash mixing
                equipments,
            (e) Mechanical flocculators and mechanical 
                reactors,
            (f) Diffused air/mechanically aerated activated 
                sludge systems,
            (g) Aerated logoon systems,
            (h) Biofilters,
            (i) Methane-recovery anaerobic digester systems,
            (j) Air floatation systems,
            (k) Air/steam stripping systems,                                                             
            (l) Urea hydrolysis systems,
            (m) Marine outfall systems,
            (n) Centrifuge for dewatering sludge,
            (o) Rotating biological contractor or bio disc,
            (p) Ion exchange resin column						80
            (q) Activated carbon column                     

       (x) (a) Solid waste control equipments, being-
                Caustic/lime/chrome/mineral/cryolite
                recovery system                             		80
            (b) Solid waste recycling and resource recovery
                systems (applicable from the assessment
                year 1994-95)                               

       (xi)  Machinery and plant, used in  semi-conductor 
                industry  covering all  integrated  circuits 
                (ICs)    (excluding     hybrid    integrated 
                circuits)    ranging   from   small    scale 
                integration/very  large scale  integration 
                (LSI/VLSI)  as also discrete semi  conductor 		40
                devices   such   as   diodes,   transistors, 
                thyristors,  Iriacs, etc., other than  those 
                covered by entries (viii),(ix) and (x) or this 
                sub-item  and sub-item (8)  below 
                
       (4) Containers made of glass or plastic used as
           refills 									50		 (5) Computers including computer software [see note
		7 below the Table] 							60  
(6)	Machinery and plant, used in weaving, processing and garment sector of textile industry, which is   purchased under TUFS on or after the 1st day of   April, 2001 but before the 1st day of April, 2004 and is put to use before the 1st day of April, 2004 [See Note 8 below the table]                             

(7)	Machinery and Plant, acquired and installed on or 
    after the 1st day of September,2002 in a water                100
    supply project or a water treatment
    system and which is put to use for the purpose of 
    business of providing infrastructure facility under
    clause (i) of sub-section (4) of section IA [See    
    Notes 4 and 9 below the table]

(8)  (i) Wooden parts used in artificial silk manu-
                facturing machinery                         100
            (ii) Cinematograph films-bulbs of studio lights  100
		(iii)Match factories-Wooden match frames         100
		(iv) Mines and quarries:                         100
(a)Tubs ,winding ropes , haulage ropes and sand stowing pipes 
(b)Safety lamps
(v)Salt works-Salt pans, reservoirs and 100 	condensers ,etc., made of earthy, sandy or   	clayely	 material or any other similar 	material 
(vi)Flour mills –Rollers 				80
(vii)Iron and steel industry 			80
– Rolling mill rolls 
(viii)Sugar works –Rollers				80
            (ix) Energy saving devices being-
            (A) Specialised bollers and furnaces -                                                                                                                                                      
            (a) Ignifluid/fluidized bed boilers             
            (b) Flameless furnaces and continuous pusher  
                type furnaces
            (c) Fluidized bed type heat treatment furnaces  
            (d) High efficiencey boilers (thermal efficiency
                higher than 75 per cent in case of coal fired
                and 80 per cent in case of oil/gas fired 
                boilers)                                    80

            (B) Instrumentation and monitoring system for  
                monitoring energy flows:
            (a) Automatic electrical load monitoring systems
            (b) Digital heat loss meters
            (c) Micro processor based control systems
            (d) Infra red thermography
            (e) Meters for measuring heat losses ,furnace
                oil flow ,steam flow ,electric energy and
                power factor meters
            (f) Maximum demand indicator and clamp on
                power meters.

            (g) Exhaust gases analyser
            (h) Fuel oil pump test bench                    80
            (C) Waste heat recovery equipments:
            (a) Economisers and feed water heaters
            (b) Recuperators and air pre-heaters
            (c) Heat pumps
            (d) Thermal energy wheel for high and low
                temperature waste heat recovery             80
            (D) Co-generation systems :
            (a) Back pressure pass out controlled extraction
                cum-condensing turbines for cogeneration
                along with pressure boilers                
            (b) Vapour absorption refrigeration systems
            (c) Organic rankine cycle power systems
            (d) Low inlet pressure small steam turbines     80
            (E) Electrical equipments
            (a) Shunt capacitors and synchronous condenser
                Systems
            (b) Automatic power cut off devices (relays) 
                mounted on individual motors
            (c) Automatic voltage controller
            (d) Power factor controller for A.C. motors
            (e) Solid state devices for controlling motor
                speeds.
            (f) Thermally energy efficient stenters(which
                require 800 or less kilo calories of heat
                to evaporate one kilogram of water)         80
		(g) Series compensation equipment	
		(h) Flexible AC Transmission (FACT)devices-
Thyristor controlled series compensation equipment
(i)	Time of Day (TOD) energy meters Equipment         
     to establish transmission highways for
National Power Grid to facilitate 
transfer of surplus power of one region to the deficient region
(k)	Remote terminal units/intelligent electronic devices , computer hardware/software,router/bridges,other 
			 	
            (F) Burners:
            (a) 0 to 10% excess air burners			80
            (b) Emulsion burners
            (c) Burners using air with high preheat temp-
                erature (above 300'C)                       80
            (G) Other equipments:
            (a) Wet air oxidation equipment for recovery of
                chemicals and heat
            (b) Mechanical vapour recompressors
            (c) Thin film evaporators
            (d) Automatic micro processor based load demand
                controllers
            (e) Coal based producer gas plants
            (f) Fluid derives and fluid couplings
            (g) Turbo charges/Super charges
		(h) Sealed radiation sources for radiation 
processing plants	
       (x) Gas cylinders including valves and regulator	80
       (xi)Glass manufacturing concerns - Direct fire
           glass melting furnaces                      80
       (xiii)Mineral Oil Concerns-

            (a) Plant used in filed operations(above group)
                Distribution Returnable packages

            (b) Plant used in field operations (below ground)
                but not including kerbside pumps including
                underground tanks and fitting used in field
                operations (distribution) by mineral oil
                concerns                                    80

       (xiii)   Renewal Energy devices being - 
            (a) Flat plate solar collectors
            (b) Concentrating and pipe type solar collectors
            (c) Solar Cookers
            (d) Solar water heaters and systems
            (e) Air/gas/fluid heating systems
            (f) Solar crop driers and systems
            (g) Solar refrigeration, cold storages and air
                conditioning systems
            (h) Solar steels and desalination systems
            (i) Solar power generating systems
            (j) Solar pumps based on solar thermal and solar
                photovoltaic conversions
            (k) Solar photovotaic modules and panels for
                water pumping and other applications
            (l) Wind mills and any specially designed  
                devices which run on wind mills
            (m) Any special devices including electric 
                generators and pumps running on wind energy
            (n) Biogas plant and biogas engines
            (o) Electrically operated vehicles including 
                battery powered or fuel-cell powered vehicles
            (p) Agricultural and municipal waste conversion  
                devices producing energy
            (q) Equipment for utilising ocean waste and
                thermal energy
            (r) Machinery and plant used in the manufacture
                of any of the above sub-items               80

       [9]	(i) Books owned by an assessee carrying on a
           profession
			(a)Books, being annual publications		100
			(b)Books, other than those covered by 	60
entry(a)above
(ii)Books owned by assessees carrying
           on business in running lending libraries 		100

IV. SHIPS
            (1) Ocean going ships including dredgers, tugs,
                barges,survey launches and other similar
                ships used mainly for dredging purposes
                and fishing vessels with wooden hull         25
            (2) Vessels ordinarily operating on inland
                waters, not covered by sub-item 3 below      25
            (3) Vessels ordinarily operating on inland
                water being speed boats                      25
			[See Note 10 below the Table]

B. INTANGIBLE ASSETS 
   Know-how ,patents ,copyrights ,trademarks ,licences ,franchises
   or any other business or commercial rights of similar
   nature                                                    25   
Notes 
1 “Building” include roads, bridges, culverts, wells and tubewells.

2 A building shall be deemed to be a building used mainly for residential purposes, if built up floor area thereof used for residential purposes is not less than sixty-six and two third percent of its total built up floor area and shall include any such building in the factory premises 

3 In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in explanation 1 of clause (ii) of sub section (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1)or (2) of item 1 as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected . Where the structure is constructed or the work is done by way of extension of any such building ,the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

4 Water treatment/system includes system for desalinization ,demineralization and purification of water

5 “Electrical fittings” include electrical wiring ,switches ,sockets ,other fittings and fans etc.

6 “commercial vehicle” means “heavy goods vehicle”, “heavy passenger motor vehicle”,” “light motor vehicle”,” “medium goods vehicle” and “medium passenger motor vehicle” but does not include “maxi-cab”,”motor cab”,”tractor” and “road-roller”. The expressions “heavy goods vehicle”,” “medium passenger motor vehicle”, “maxi-cab”,”motor cab”,”tractor” and “road roller”shall have the meanings respectively as assigned to them in section 2 of the motor vehicles Act, 1988(59 of 1988)

7 “Computer software” means any computer programme recorded on any disc ,tape,perforated media or their information storage device 

8 “TUFS” means Technology Upgradation Funds Scheme announced by the government of India in the form of a resolution of the ministry of textiles vide no 28/1/99-CTI of 31.3.1999

9 Machinery and plant includes pipes needed for delivery from the source of supply of raw water to the plant and from the plant to the storage facility

10 “Speed boat” means a motor boat driven by a high speed internal combustion engine capable or propelling the boat at a speed exceeding 24 kilometers per hour in still water and so designed that when running a speed , if will plane, i.e., its bow will rise from the water.