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DEPRECIATION AS PER INCOME TAX ACT, 1961

ASSETS Depreciation Allowance as a Pecentage of "Written Down Value"(WDV)
Assessment Year(2003-04) To Assessment Year(2005-06) in Percentage Assessment Year(2006-07) Onwards in Percentage
TANGIBLE ASSETS
A Buildings
1 Buildings which are used mainly for residential purposes except hotels and boarding houses 5 5
2 Building other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below 10 10
3 Building acquired on or after the 1st day of September, 2002 for installing machinery 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 sub-section (4) of section 80-IA 100 100
4 Purely temporary erections such as wooden structures 100 100
B Funiture and Fittings
1 Furniture and Fittings including electrical fittings  [See Note 5 below the Table] 15 10
C Plant and Machinery
1 Machinery and plant other than those covered by sub-items (2), (3) and (8) below 25 15
2 Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990 20 15
3 (i) Aeroplanes – Aeroengines 40 40
(ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire 40 30
(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 business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table] 40 40
(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 replacement 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 accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table] 60 60
(v) New commercial vehicle which is acquired on or after the Ist  day of April, 1999 but before the Ist 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) sub-section (1) of section 32 [See Note 6 below the Table] 60 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 of business or profession [See Note 6 below the Table] 50 50
(vi a) New commercial vehicle which is acquired on or after the 1st day of January, 2009 but before the 1st day of October, 2009 and is put to use before the 1st day of October , 2009 for the purposes of business or profession [See Note 6 below the Table] -- 50
(vii) Moulds used in rubber and plastic goods factories 40 30
(viii) Air Pollution control equipment being
(a) Electrostatic precipitation systems 100 100
(b) Felt-filter systems 100 100
(c) Dust collector systems 100 100
(d) Scrubber-counter current/venturi / packed-bed / cyclonic scrubbers 100 100
(e) Ash handling system and evacuation being 100 100
(ix) Water pollution control equipment being
(a) Mechanical screen systems 100 100
(b) Aerated detritus chambers (including air compressor) 100 100
(c) Mechanically skimmed oil and grease removal systems 100 100
(d) Chemical feed systems and flash mixing equipment 100 100
(e) Mechanical flocculators and mechanical reactors 100 100
(f) Diffused air/mechanically aerated activated sludge systems 100 100
(g) Aerated lagoon systems 100 100
(h) Biofilters 100 100
(i) Methane-recovery anaerobic digester systems 100 100
(j) Air floatation systems 100 100
(k) Air / steam stripping systems 100 100
(l) Urea hydrolysis systems 100 100
(m) Marine outfall systems 100 100
(n) Centrifuge for dewatering sludge 100 100
(o) Rotating biological contractor or bio-disc 100 100
(p) Ion exchange resin column 100 100
(q) Activated carbon column 100 100
(x) (a) Solidwaste control equipments, being- caustic / lime / chrome / mineral / crinoline recovery system 100 100
(b) Solidwaste recycling and resource recovery systems 100 100
(xi) Machinery and plant used in semi-conductor industry converting all integrated circuits (ICs) (excluding hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration/very large scale integration (LSI / VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc.) other than those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below 40 30
(xi a) Life saving medical equipment, being-
(a) D.C. Defibrillators for internal use and pace makers 40 40
(b) Haemodialysors 40 40
(c) Heart lung machine 40 40
(d) Cobalt Therapy Unit 40 40
(e) Colour Doppler 40 40
(f) SPECT Gamma Camera 40 40
(g) Vascular Angiography System including Digital subtraction Angiography 40 40
(h) Ventilator used with anesthesia apparatus 40 40
(i) Magnetic Resonance Imaging System 40 40
(j) Surgical Laser 40 40
(k) Ventilators other than those used with anesthesia 40 40
(l) Gamma knife 40 40
(m) Bone Marrow Transplant Equipment including silastic long standing intravenous catheters for chemotherapy 40 40
(n) Fibreoptic endoscopes including Pediatric resectoscope/audit resectoscope, Peritoneoscopes, Arthroscopy, Micro-laryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastro-scope, Stroboscope, Fibreoptic Flexible Oesophago Gastro-scope 40 40
(o) Laparoscope (single incision) 40 40
4 Containers made of glass or plastic used as re-fills 50 50
5 Computers including computer software [See note 7 below the Table] 60 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] 50 50
7 Machinery and plant, acquired and installed on or after the 1st day of September, 2002 in a water 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 80-IA [See Notes 4 and 9 below the Table] 100 100
8 (i) Wooden parts used in artificial silk manufacturing machinery 100 100
(ii) Cinematograph films-bulbs of studio lights 100 100
(iii) Match factories-Wooden match frames 100 100
(iv) Mines and quarries
(a) Tubs, winding ropes, haulage rope and sand stowing pipes 100 100
(b) Safety lamps 100 100
(v) Salt works-Salt pans, reservoirs and condensers, etc., made of earthy, sand or clayey material or any other similar material 100 100
(vi) Flour Mills-Rollers 80 80
(vii) Iron and Steel industry-Rolling mill rolls 80 80
(viii) Sugar Works-Rollers 80 80
(ix) Energy saving devices being-
A Specialised boilers and furnaces;
(a) Ignifluid / fluidized bed boilers 80 80
(b) Flameless furnaces and continuous pusher type furnaces 80 80
(c) Fluidized bed type hear treatment furnaces 80 80
(d) High efficiency 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 80
B Instrumentation and monitoring system energy flows;
(a) Automatic electrical load monitoring systems 80 80
(b) Digital heat loss meters 80 80
(c) Micro-processor based control systems 80 80
(d) Infra-red thermograph 80 80
(e) Meters for measuring heat losses, furnace oil flow, stream flow, electric energy and power factor meters 80 80
(f) Maximum demand indicator and clamp on power meters 80 80
(g) Exhaust gases analyzer 80 80
(h) Fuel oil pump test bench 80 80
C Waste heat recovery equipments;
(a) Economisers and feed water heaters 80 80
(b) Recuperators and air pre-heaters 80 80
(c) Head pumps 80 80
(d) Thermal energy wheel for high and low temperature waste heat recovery 80 80
D Co-Generation systems;
(a) Back pressure pass out, controlled extraction, extraction-cum- condensing turbines for co-generation along with pressure boilers 80 80
(b) Vapour absorption refrigeration systems 80 80
(c) Organic rankine cycle power systems 80 80
(d) Low inlet pressure small steam turbines 80 80
E Electrical equipments
(a) Shunt capacitors and synchronous condenser systems 80 80
(b) Automatic power cut off devices (relays) mounted on individual motors 80 80
(c) Automatic voltage controller 80 80
(d) Power factor controller for AC Motors 80 80
(e) Solid state devices for controlling motor speeds 80 80
(f) Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water) 80 80
(g) Series compensation equipment 80 80
(h) Flexible AC Transmission (FACT) devices- Thyristor controlled series compensation equipment 80 80
(i) Time of Day (TOD) energy meters 80 80
(j) Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient region 80 80
(k) Remove terminal units/intelligent electronic devices, computer hardware/software, router/bridges, other required equipment and associated communication systems for supervisory control and data acquisition systems, energy management systems and distribution management systems for power transmission systems 80 80
(l) Special energy meters for Availability Based Tariff (ABT) 80 80
F Burners;
(a) 0 to 10 per cent excess air burners 80 80
(b) Emulsion burners 80 80
(c) Burners using air with high pre-heat temperature (above 300’ C) 80 80
G Other equipment;
(a) Wet air oxidation equipment for recovery of chemicals and heat 80 80
(b) Mechanical vapour re-compressors 80 80
(c) Thin film evaporators 80 80
(d) Automatic micro-processor based load demand controllers 80 80
(e) Coal based producer gas plants 80 80
(f) Fluid drives and fluid couplings 80 80
(g) Turbo Charges/super charges 80 80
(h) Sealed radiation sources for radiation processing plants 80 80
(x) Gas cylinders including valves and regulators 80 60
(xi) Glass manufacturing concerns – Direct fire glass melting furnaces 80 60
(xii) Mineral Oil concerns
(a) Plant used in field operations (above ground), distribution-Returnable 80 60
(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 60
(xiii) Renewal energy devices being-
(a) Flat plate solar collectors 80 80
(b) Concentrating and pipe type solar collectors 80 80
(c) Solar Cookers 80 80
(d) Solar water heaters and systems 80 80
(e) Air / gas fluid heating systems 80 80
(f) Solar crop driers and systems 80 80
(g) Solar refrigeration, cold storages and air-conditioning systems 80 80
(h) Solar power generating systems 80 80
(i) Solar power generating systems 80 80
(j) Solar pumps based on solar-thermal and solar photovoltaic conversion 80 80
(k) Solar photovoltaic modules and panels for water pumping and other    applications 80 80
(l) Wind mills and any specially designed devices which run on wind mills 80 80
(m) Any special devices including electric generators and pumps running on wind energy 80 80
(n) Bio-gas plant and bio-gas engines 80 80
(o) Electrically operated vehicles including battery powered or fuel-cell powered vehicles 80 80
(p) Agricultural and municipal waste conversion devices producing energy 80 80
(q) Equipment for utilising ocean waste and thermal energy 80 80
(r) Machinery and plant used in the manufacture of any of the above sub-items 80 80
9 (i) Books owned by assessees carrying on a profession
(a) Books, being annual publications 100 100
(b) Books, other than those covered by entry (a) above 60 60
(ii) Books owned by assessees carrying on business in running lending libraries 100 100
D 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 20
2 Vessels ordinarily operating on inland waters, not covered by sub-item (3) below 25 20
3 Vessels ordinarily operating on inland waters being speed boats (see Note 10 below the Table) 25 20
INTANGIBLE ASSETS
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 25
Note
1. “Buildings” include roads, bridges, culverts, wells and tube-wells.
2. A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential purposes is not less than sixty-six and two their per cent 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-item (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I 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 desalinisation, demineralisation 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”, “heavy passenger motor vehicle”, “light motor vehicle”, “medium passenger motor vehicle”, “maxi-cab”, “tractor” and “road-roller” shall have the meanings respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988]
7. “Computer software” means any computer programmed recorded on any disc, tape, perforated media or other information storage device.
8. “TUFS” means Technology Up-gradation Fund 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 of propelling the boat at a speed exceeding 24 kilometers per hour in still water and so designed that when running at a speed, it will rise from the water.