Depreciation as per Companies Act, 1956



[See sections 250 and 350]




   Single Shift  Double Shift  Triple Shift           Nature of Assets            ------------  ------------  ------------

                                   WDV    SLM    WDV    SLM    WDV   SLM




(a)  Buildings(Other than         5.00    1.63               

    factory Buildings) [NSED]

(b)  FACTORY BUILDINGS            10.00   3.34                     

(c)  Purely Temporary Erections   100     100                      

    such as wooden structures.



(i)   General rate applicable to

(a)  plant & machinery (not       13.91   4.75 20.87  7.42   27.82   10.34

being a ship) other than

continuous process plant

for which no special rate

has been prescribed under

(ii) below

(b)  continuous process plant,    15.33   5.28

    2[***] for which no special

    rate has been prescribed

    under (ii) below [NSED]


(ii)Special Rate

A.  1. Cinematography films-     20.00   7.07      

    Machinery Used in the

    production and Exhibition

    of cinematography Films[NSED]

a.   Recording equipment,        

    reproducing Equipment,

    developing machines Printing       

    machines, editing Machines,

    synchronisers and Studio

    lights excepts bulb

b.   Projecting equipment of     

    Film exhibiting concerns

2     Cycles [NSED]                20.00   7.07

3     Electrical machinery, X-ray  20.00   7.07

    and electro-therapeutic

    apparatus and accessories

    thereto medical, diagnostic

    equipment, namely cat-scan,

    ultrasound machines, ECG

    monitors, etc.[NSED]

4     Juice boiling pans (karhais) 20.00  7.07


5     Motor-cars, motor-cycles,    25.89  9.5 

scooters & other mopeds[NSED]

6     Electrically operated        20.00  7.07

    vehicles including battery 

powered vehicles [NSED]

7     Sugarcane crushers(indigen-  20.00  7.07 

Ous kolhus & beans) [NSED]

8     Glass manufacturing concerns 20.00  7.07  30.00  11.31  40.00  16.21

except direct fire glass

melting furnaces-

Recuperative and regenerative

glass melting furnaces

9     Machinery used in the        15.62  5.38  23.42  8.46   31.23  11.87

manufacture of electronic

goods and components


   B.1 [Aeroplanes, aero engines,   16.2   5.6    

       simulators, Visual System

       and quick engine change

       Equipment [NSED]

2     Concrete pipes manufacture-  30.00  11.31           

Moulds [NSED]

3     Drum containers manufacture- 30.00  11.31  

Moulds [NSED]

4     Earth-moving machinery       30.00  11.31

    employed in heavy construction

    works, such as dams, tunnels,

    canals, etc. [NSED]

5     Glass manufacturing concerns 30.00  11.31

    except direct fire glass

    melting furnaces-Moulds      30.00  11.31


6     Moulds in iron foundries     30.00  11.31


7     Mineral oil concerns-Field   30.00  11.31

    operations(above ground)-   

    Portable boilers, drilling

    tools, well-head tanks,

    rigs, etc.[NSED]

8     Mines and quarries-Portable 30.00  11.31

    underground machinery and

    earth-moving machinery used

    in open caste mining[NSED]

9     Motor buses and motor        30.00  11.31

    lorries other than those

    used in a business of

    running them on hire[NSED]

9A  Motor tractors, harvesting   30.00  11.31


10   Patterns, dies and           30.00  11.31


11   Ropeway structures-Ropeways, 30.00  11.31

    ropes and trestle sheaves

    and connected parts[NSED]

12   Shoe and other leather goods 30.00  11.31  45.00 18.96  60.00  29.05

    fabrics-Wooden lasts used in

    the manufacture of shoes


C.   1. [** ** **]                40.00  16.21  

2.   Motor buses, motor lorries   40.00  16.21

    and motor taxis used in

    a business of running

    them on hire [NESD]

3.   Rubber and plastic goods     40.00  16.21


4.   Data processing machines

    including computers[NESD]

5.   Gas cylinders including      40.00  16.21

    valves and regulators[NESD]


D.  1.Artificial silk             100    100

    manufacturing machinery

    with Wooden parts

2.   Cinematograph films-Bulbs    100    100    

    of studio lights

3.   Flour mills-Rollers          100    100

4.   Glass manufacturing          100    100

    concerns-Direct fire glass

    Melting Furnaces

4A. Flot Glass Melting Furnaces 27.00  10.00


5.   Iron and Steel industries-   100    100

    Rolling mill rolls

6.   Match factories-Wooden       100    100

    match frames

7.   Mineral oil concerns- (a)    100    100

    Plant used in field operations

    (below ground)-Distribution

    returnable packages; (b)Plant

    used in field operations

    (below ground)but not including

    assets used in field operation

    distribution) Kerbsides pumps

    including underground tanks

    & fittings

8.   Mines And Querries           100    100

9.   a. Tubs, winding ropes,      100    100

    haulage ropes and sand

    Stowing pipes

    b  Safety Lamps

10.  Salt works-Salt pans,        100    100

    reservoirs and condensers

    Etc. made of earthy, sandy

    or clay material or Any

    other similar material

11.  Sugar works-Rollers          100    100



1     General Rates [NESD]         18.1   6.33

2     Rate for furniture & fittings

    used in hotels, restaurants

    and boarding houses; schools,

    colleges and other educational

    institutions, libraries; welfare

    centers meeting halls, cinema

    houses, theatres and circuses;

    and for furniture and fittings

    let out on hire for use on

    occasion of marriages and

    similar functions [NESD]     25.88   9.5




1.   Ocean-going ships            27.05   10.00                       

i)   Fishing vessels with

    wooden hull [NESD]

ii) Dredgers, tugs, barges,      19.8    7.00

    survey launches and Other

    similar ships used mainly

    for dredging Purposes [NESD]

iii)Other ships [NESD]           14.6    5.00

2.  Vessels ordinarily operating

    on inland waters-               

i)   Speed boats [NSED]           20.00   7.07

ii)  Other vessels [NESD]         10.00   3.34





1.    “Buildings” include roads, bridges, culverts,wells and tube-wells

2.    “Factory buildings” does not include offices, godowns, officers’ and

employees’ quarters, roads, bridges, culverts.

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

4.    Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such assets has been sold, discarded, demolished or destroyed.

5.    The following information should also be disclosed in the accounts:-

i.   depreciation method used; and

ii.  depreciation rates or the useful lives of the assets, if they are different from the principal rates specified in the Schedule.

6.    The calculations of the extra depreciation for double shift working and for triple shift working shall be made separately in the proportion while the number of days for which the concerned worked double shift or triple shift, number of working days during the year shall be deemed to be-

(a) in the case of a seasonal factory or concern, the number of days on which the factory or concern actually worked during the year or 180 days, whichever is greater;

(b) in any other case, the number of days on which the factory or concern actually worked during the year or 240 days, whichever is greater.


 The extra shift depreciation shall not be charged in respect of any item of machinery or plant which has been specifically, excepted by the inscription of the letters “NESD” (meaning “no extra shift depreciation”) against it an sub-items above and also in respect of the following items of machinery and plant to which general rate of depreciation of 7[13.91] per cent applies-


1.  Accounting machines.

2.  Air-conditioning machinery including room air-conditioners.

3.  Building contractor’s machinery.

4.  Calculating machines.

5.  Electrical machinery-switchgear and instruments, transformers and other stationary plant and wiring and fitting of electric light and fans installation.

6.  Hydraulic works pipelines and sluices.

7.  Locomotives, rolling stocks, tramways and railways used by concerns.

8.  Mineral oil concerns- field operations:

(a)  8[***]

(b)  Prime movers

(c)  8[***]

(d)  Storage tanks (above ground)

(e)  Pipelines (above ground)

(f)  Jetties & dry docks

9.  Mineral oil concerns-field operations (distribution)-kerbside pumps, including underground tanks and fittings.

10.   Mineral oil concerns-refineries:

a)  9[***]

b)  Prime Movers

c)  9[***]

d)  LPG Plant

11. Mines and querries:

a)    Surface and underground machinery (other than electrical machinery and portable underground machinery)

b)    Head-gears

c)    9[***]

d)    Shafts and inclines

e)    Tramway on surface

11.   Neo post franking machine

12.   Office machinery

13.   Overhead cables and wires.

14.   Railway sidings.

15.   Refrigeration plant container, etc (other than racks).

16.   Ropeway structure:

a)    Trestle and station steel work.

b)    Driving and tention gearing.

17.   Salt works-Reservoirs, condensers, salt pans, delivery channels and piers if     constructed of masonry, concrete, cement, asphalt or similar materials; barges and floating plant; piers, quays and jetties; and pipelines for conveying brine if constructed of masonry, concrete cement, asphalt or similar materials.

18.   Surgical instruments.

19.   Tramways electric and Tramways run by internal combustion engines-permanent ways: cars-car trucks, car bodies, electrical equipment and motors; tram cars including engines and gears.

20.   Typewriters.

21.   Weighing machines

22.   Wireless apparatus and gear, wireless appliances and accessories.

23.   [***]


7. Continuous process plant means a plant which is required and designed to operate  

   24 hours a day.

8. Notwithstanding anything mentioned in this Schedule, depreciation on assets, whose actual cost does not exceed five thousand rupees, shall be provided at the rate of hundred percent:


Provided that where the aggregate actual cost of individual items of plant and machinery costing Rs. 5,000 less constitutes more than 10 per cent of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates as specified in Item II of the schedule.




 Depreciation under Income Tax Act


Rate Of Depreciation As Per Income Tax Act





                   Block of Assets               Depreciation allowance

                   (See Para 48.3-3)             as percentage of

                                                 written down value


                         1                                       2



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



       Furniture and fittings including electric fittings         15

       (See Notes 5 below the Table)



   (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


            (c) Mechanically skimmed oil and grease removal


            (d) Chemical feed systems and flash mixing


            (e) Mechanical flocculators and mechanical


            (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-


                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


            (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


            (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


            (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


                  (a)Books, being annual publications       100

                  (b)Books, other than those covered by     60


(ii)Books owned by assessees carrying

           on business in running lending libraries         100



            (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]



   Know-how ,patents ,copyrights ,trademarks ,licences ,franchises

   or any other business or commercial rights of similar

   nature                                                    25  


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.



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