Rates of depreciation

(for income-tax)
AS APPLICABLE FROM THE ASSESSMENT YEAR 2003-04 ONWARDS
Block of assets Depreciation
allowance as
percentage of
written down value

AYs AY 2006-
2003- 07
04 to onwards
2005-
06

1 2 3

PART A
TANGIBLE ASSETS
I. BUILDING [See Notes 1 to 4 below the Table]
(1) Buildings which are used mainly for residential purposes 5 5
except hotels and boarding houses
(2) Buildings other than those used mainly for residential 10 10
purposes and not covered by sub-items (1) above and
(3) below
(3) Buildings acquired on or after the 1st day of September, 100 100
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 infra- structure facilities under clause (i) of
sub-section (4) of section 80-IA
(4) Purely temporary erections such as wooden structures 100 100
II. FURNITURE AND FITTINGS
Furniture and fittings including electrical fittings [See Note 5 15 10
below the Table]

III. MACHINERY AND PLANT

(1) Machinery and plant other than those covered by sub- 25c. 15c.
items (2), (3) and (8) below :
a.
(2) Motor cars, other than those used in a business of 20 15
running them on hire, acquired or put to use on or after
the 1st day of April, 1990
(3) (i) Aeroplanes - Aeroengines 40 40
b.
(ii) Motor buses, motor lorries and motor taxis used in a 40 30
business of running them on hire
(iii) Commercial vehicle which is acquired by the assessee 40 40
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]
(iv) New commercial vehicle which is acquired on or after 60 60
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]
(v) New commercial vehicle which is acquired on or after 60 60
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 (1) of section 32 [See Note 6
below the Table]
(vi) New commercial vehicle which is acquired on or after 50 50
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]
(via) New commercial vehicle which is acquired on or 50
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 paragraph 6 of the Notes below this
Table]
d.
(vii) Moulds used in rubber and plastic goods factories 40 30
(viii) Air pollution control equipment, being

(a) Electrostatic precipitation systems

(b) Felt-filter systems
 (c) Dust collector systems 100 100
(d) Scrubber-counter current/venturi/packed
bed/cyclonic scrubbers
(e) Ash handling system and evacuation system
(ix) Water pollution control equipment, 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
equipment
(e) Mechanical flocculators and mechanical reactors
(f) Diffused air/mechanically aerated activated sludge
systems
(g) Aerated lagoon systems 100 100
(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
(q) Activated carbon column

(x) (a) Solidwaste control equipments being -

caustic/lime/chrome/mineral/cryolite recovery
systems 100 100
(b) Solidwaste recycling and resource recovery
systems
 (xi) Machinery and plant, used in semi-conductor industry 40 30
covering 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
(xia) Life saving medical equipment, being

(a) D.C. Defibrillators for internal use and pace

makers
(b) Haemodialysors
(c) Heart lung machine
(d) Cobalt Therapy Unit
(e) Colour Doppler
(f) SPECT Gamma Camera
(g) Vascular Angiography System including Digital
subtraction Angiography
(h) Ventilator used with anaesthesia apparatus
(i) Magnetic Resonance Imaging System
(j) Surgical Laser 40 40
(k) Ventilators other than those used with anaesthesia
(l) Gamma knife
(m) Bone Marrow Transplant Equipment including
silastic long standing intravenous catheters for
chemotherapy
(n) Fibreoptic endoscopes including Paediatric
resectoscope/audit resectoscope, Peritoneoscopes,
Arthoscope, Microlaryngoscope, Fibreoptic
Flexible Nasal Pharyngo Bronchoscope,
Fibreoptic Flexible Laryngo Bronchoscope, Video
Laryngo Bronchoscope and Video Oesophago
Gastroscope, Stroboscope, Fibreoptic Flexible
Oesophago Gastroscope
(o) Laparoscope (single incision)
(4) Containers made of glass or plastic used as re-fills 50 50
(5) Computers including computer software [See note 7 60 60
below the Table]
(6) Machinery and plant, used in weaving, processing and 50 50
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 100 100
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]
(8) (i) Wooden parts used in artificial silk manufacturing 100 100
machinerye.
(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 ropes and sand
stowing pipes 100 100
(b) Safety lamps
(v) Salt works - Salt pans, reservoirs and condensers, etc., 100 100
made of earthy, sandy or clayey material or any other
similar material
(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

(b) Flameless furnaces and continuous pusher
type furnaces
(c) Fluidized bed type heat 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)
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 80 80
(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
C. Waste heat recovery equipment:

(a) Economisers and feed water heaters

(b) Recuperators and air pre-heaters 80 80
(c) Heat pumps
(d) Thermal energy wheel for high and low
temperature waste heat recovery
D. Co-generation systems:

(a) Back pressure pass out, controlled extraction, 80 80

extraction-cum-condensing turbines for co-
generation along with pressure boilers
(b) Vapour absorption refrigeration systems
(c) Organic rankine cycle power systems
(d) Low inlet pressure small steam turbines
E. Electrical equipment:

(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 AC motors
(e) Solid state devices for controlling motor
speeds
(f) Thermally energy-efficient stenters (which
require 800 or less kilocalories of heat to
evaporate one kilogram of water)
(g) Series compensation equipment
(h) Flexible AC Transmission (FACT) devices - 80 80
Thyristor controlled series compensation
equipment
(i) Time of Day (ToD) energy meters
(j) 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 required equipment and
associated communication systems for
supervisory control and data acquisition
systems, energy management systems and
distribution management systems for power
transmission systems
(l) Special energy meters for Availability Based
Tariff (ABT)
F. Burners:

(a) 0 to 10 per cent excess air burners

(b) Emulsion burners 80 80
(c) Burners using air with high pre-heat
temperature (above 300C)
G. Other equipment:

(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 80 80
demand controllers
(e) Coal based producer gas plants
(f) Fluid drives and fluid couplings
(g) Turbo charges/super-charges
(h) Sealed radiation sources for radiation
processing plants
f.
(x) Gas cylinders including valves and regulators 80 60
(xi) Glass manufacturing concerns - Direct fire glass 80 60
melting furnaces
g.
(xii) Mineral oil concerns:

(a) Plant used in field operations (above ground)

distribution - Returnable packages
(b) Plant used in field operations (below ground), 80 60
but not including kerbside pumps including
underground tanks and fittings used in field
operations (distribution) by mineral oil
concerns
(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 conversion
(k) Solar-photovoltaic modules and panels for 80 80
water pumping and other applications
 (l) Windmills and any specially designed devices
which run on wind-mills installed on or
before March 31, 2012
(m) Any special devices including electric
generators and pumps running on wind
energy installed on or before March 31, 2012
(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
(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) 60 60
above
(ii) Books owned by assessees carrying on 100 100
business in running lending libraries
IV. SHIPS
(1) Ocean-going ships including dredgers, tugs, barges, 25 20
survey launches and other similar ships used mainly for
dredging purposes and fishing vessels with wooden hull
(2) Vessels ordinarily operating on inland waters, not 25 20
covered by sub-item (3) below
(3) Vessels ordinarily operating on inland waters being 25 20
speed boats [See Note 10 below the Table]
PART B
INTANGIBLE ASSETS
Know-how, patents, copyrights, trademarks, licences, franchises or 25 25
any other business or commercial rights of similar nature
Notes:
1. "Buildings" include roads, bridges, culverts, wells and tubewells.
 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-third 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-section (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 desalination, 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 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 other information storage device.
8. "TUFS" means Technology Upgradation 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 plane, i.e., its bow will rise from
the water.
Depreciation rates for power generating units
(applicable from the assessment year 1998-99
Class of assets Depreciation
allowance as
percentage
of actual
cost

(a) Plant and Machinery in generating stations including plant foundations

:
(i) Hydro-electric 3.4
 (ii) Steam electric NHRS & Waste heat recovery Boilers/plants 7.84
(iii) Diesel electric and Gas plant 8.24
(b) Cooling towers and circulating water systems 7.84
(c) Hydraulic works forming part of Hydro-electric system including :
(i) Dams, spillways weirs, canals, reinforced concrete flumes and 1.95
siphons
(ii) Reinforced concrete pipelines and surge tanks steel pipelines, 3.4
sluice gates, steel surge (tanks), hydraulic control valves and other
hydraulic works.
(d) Building and civil engineering works of permanent character, not
mentioned above
(i) Office & showrooms 3.02
(ii) Containing Thermo-electric generating plant 7.84
(iii) Containing Hydro-electric generating plant 3.4
(iv) Temporary erection such as wooden structures 33.4
(v) Roads other than Kutcha roads 3.02
(vi) Others 3.02
(e) Transformers, transformer (Kiosk) sub-station equipment & other fixed
apparatus (including plant foundations)
(i) Transformers (including foundations) having a rating of 100 kilo 7.81
volt amperes and over
(ii) Others 7.84
(f) Switchgear including cable connections 7.84
(g) Lightning arrestor :
(i) Station type 7.84
(ii) Pole type 12.77
(iii) Synchronous condenser 5.27
(h) Batteries 33.4
(i) Underground cable including joint boxes and disconnectioned 5.27
boxes
(ii) Cable duct system 3.02
(i) Overhead lines including supports :
 (i) Lines on fabricated steel operating at nominal voltages higher than 5.27
66 kilo volts
(ii) Lines on steel supports operating at nominal voltages higher than 7.84
13.2 kilo volts but not exceeding 66 kilo volts
(iii) Lines on steel or reinforced concrete supports 7.84
(iv) Lines on treated wood supports 7.84
(j) Meters 12.77
(k) Self-propelled vehicles 33.40
(l) Air-conditioning plants :
(i) Static 12.77
(ii) Portable 33.40
(m) (i) Office furniture and fittings 12.77
(ii) Office equipments 12.77
(iii) Internal wiring including fittings and apparatus 12.77
(iv) Street light fittings 12.77
(n) Apparatus let on hire
(i) Other than motors 33.4
(ii) Motors 12.77
(o) Communication equipment :
(i) Radio and high frequency carrier system 12.77
(ii) Telephone lines and telephones 12.77
(p) Any other assets not covered above 7.69
Depreciation under Companies Act, 2013
1
SCHEDULE II2
(See section 123)
USEFUL LIVES TO COMPUTE DEPRECIATION
PART 'A'
1. Depreciation is the systematic allocation of the depreciable amount of an asset over its
useful life. The depreciable amount of an asset is the cost of an asset or other amount
substituted for cost, less its residual value. The useful life of an asset is the period over which
an asset is expected to be available for use by an entity, or the number of production or
similar units expected to be obtained from the asset by the entity.
2. For the purpose of this Schedule, the term depreciation includes amortisation.
3. Without prejudice to the foregoing provisions of paragraph 1,
3
[(i) The useful life of an asset shall not be longer than the useful life specified in Part 'C' and
the residual value of an asset shall not be more than five per cent of the original cost of the
asset:
Provided that where a company uses a useful life or residual value of the asset which is
different from the above limits, justification for the difference shall be disclosed in its
financial statement.
(ii) For intangible assets, the provisions of the accounting standards applicable for the time
being in force shall apply, except in case of intangible assets (Toll Roads) created under
'Build, Operate and Transfer', 'Build, Own, Operate and Transfer' or any other form of
public private partnership route in case of road projects. Amortisation in such cases may be
done as follows:
(a) Mode of amortisation
Amortisation Amount
Cost of Intangible Assets
(A)
Amortisation Amount =
Actual Revenue for the year (B)
Projected Revenue from Intangible Asset (till the end of the
concession period) (C)
(b) Meaning of particulars are as follows :
Cost of Intangible Assets = Cost incurred by the company in accordance with the
(A) accounting standards.
Actual Revenue for the = Actual revenue (Toll Charges) received during the accounting
year (B) year.
Projected Revenue from = Total projected revenue from the Intangible Assets as provided
Intangible Asset (C) to the project lender at the time of financial closure/agreement.
The amortisation amount or rate should ensure that the whole of the cost of the intangible
asset is amortised over the concession period.
Revenue shall be reviewed at the end of each financial year and projected revenue shall be
adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection
at the end of the concession period.
(c) Example:
Cost of creation of Intangible Assets : Rs. 500 Crores
Total period of Agreement : 20 Years
Time used for creation of Intangible Assets : 2 Years
Intangible Assets to be amortised in : 18 Years
Assuming that the Total revenue to be generated out of Intangible Assets over the period
would be Rs. 600 Crores, in the following manner:
 Year No. Revenue (In Rs. Crores) Remarks

Year 1 5 Actual

Year 2 7.5 Estimate*

Year 3 10 Estimate*

Year 4 12.5 Estimate*

Year 5 17.5 Estimate*

Year 6 20 Estimate*

Year 7 23 Estimate*

Year 8 27 Estimate*

Year 9 31 Estimate*

Year 10 34 Estimate*

Year 11 38 Estimate*

Year 12 41 Estimate*

Year 13 46 Estimate*

Year 14 50 Estimate*

Year 15 53 Estimate*

Year 16 57 Estimate*

Year 17 60 Estimate*

Year 18 67.5 Estimate*

Total 600
'*' will be actual at the end of financial year.
Based on this the charge for first year would be Rs. 4.16 Crore (approximately) (i.e. Rs. 5/Rs.
600 Rs. 500 Crores) which would be charged to profit and loss and 0.83% (i.e. Rs. 4.16
Crore/Rs. 500 Crore 100) is the amortisation rate for the first year.
Where a company arrives at the amortisation amount in respect of the said Intangible Assets
in accordance with any method as per the applicable Accounting Standards, it shall disclose
the same.]
PART 'B'
4. The useful life or residual value of any specific asset, as notified for accounting purposes
by a Regulatory Authority constituted under an Act of Parliament or by the Central
Government shall be applied in calculating the depreciation to be provided for such asset
irrespective of the requirements of this Schedule.
PART 'C'
5. Subject to Parts A and B above, the following are the useful lives of various tangible
assets:
Nature of assets Useful Life

I. Buildings [NESD]
(a) Buildings (other than factory buildings) RCC Frame Structure 60 Years
(b) Buildings (other than factory buildings) other than RCC Frame 30 Years
Structure
(c) Factory buildings -do-
(d) Fences, wells, tube wells 5 Years
(e) Others (including temporary structure, etc.) 3 Years

II. Bridges, culverts, bunders, etc. [NESD] 30 Years

III. Roads [NESD]
(a) Carpeted roads
(i) Carpeted RoadsRCC 10 Years
(ii) Carpeted Roadsother than RCC 5 Years
(b) Non-carpeted roads 3 Years

IV. Plant and Machinery

(i) General rate applicable to plant and machinery not covered
under special plant and machinery
(a) Plant and Machinery other than continuous process plant not 15 Years
covered under specific industries
4
[(b) Continuous process plant for which no special rate has 25 Years]
been prescribed under (ii) below [NESD]
(ii) Special Plant and Machinery
(a) Plant and Machinery related to production and exhibition of
Motion Picture Films
1. Cinematograph filmsMachinery used in the 13 Years
production and exhibition of cinematograph films,
recording and reproducing equipments, developing
machines, printing machines, editing machines,
synchronizers and studio lights except bulbs
2. Projecting equipment for exhibition of films -do-
(b) Plant and Machinery used in glass manufacturing
 1. Plant and Machinery except direct fire glass melting
furnaces
Recuperative and regenerative glass melting furnaces 13 Years
2. Plant and Machinery except direct fire glass melting 8 Years
furnaces Moulds [NESD]
3. Float Glass Melting Furnaces [NESD] 10 Years
(c) Plant and Machinery used in mines and quarriesPortable 8 Years
under ground machinery and earth moving machinery used
in open cast mining [NESD]
(d) Plant and Machinery used in Telecommunications [NESD]
1. Towers 18 Years
2. Telecom transreceivers, switching centres, transmission 13 Years
and other network equipment
3. TelecomDucts, Cables and optical fibre 18 Years
4. Satellites -do-
(e) Plant and Machinery used in exploration, production and
refining oil and gas [NESD]
1. Refineries 25 Years
2. Oil and gas assets (including wells), processing plant and -do-
facilities
3. Petrochemical Plant -do-
4. Storage tanks and related equipment -do-
5. Pipelines 30 Years
6. Drilling Rig -do-
7. Field operations (above ground) Portable boilers, drilling 8 Years
tools, well-head tanks, etc.
8. Loggers -do-
(f) Plant and Machinery used in generation, transmission and
distribution of power [NESD]
1. Thermal/Gas/Combined Cycle Power Generation Plant 40 Years
2. Hydro Power Generation Plant -do-
3. Nuclear Power Generation Plant -do-
4. Transmission lines, cables and other network assets -do-
 5. Wind Power Generation Plant 22 Years
6. Electric Distribution Plant 35 Years
7. Gas Storage and Distribution Plant 30 Years
8. Water Distribution Plant including pipelines -do-
(g) Plant and Machinery used in manufacture of steel
1. Sinter Plant 20 Years
2. Blast Furnace -do-
3. Coke ovens -do-
4. Rolling mill in steel plant -do-
5. Basic oxygen Furnace Converter 25 Years
(h) Plant and Machinery used in manufacture of non-ferrous
metals
1. Metal pot line [NESD] 40 Years
2. Bauxite crushing and grinding section [NESD] -do-
3. Digester section [NESD] -do-
4. Turbine [NESD] -do-
5. Equipments for Calcination [NESD] -do-
6. Copper Smelter [NESD] -do-
7. Roll Grinder 40 Years
8. Soaking Pit 30 Years
9. Annealing Furnace -do-
10. Rolling Mills -do-
11. Equipments for Scalping, Slitting, etc. [NESD] -do-
12. Surface Miner, Ripper Dozer, etc., used in mines 25 Years
13. Copper refining plant [NESD] -do-
(i) Plant and Machinery used in medical and surgical
operations [NESD]
1. Electrical Machinery, X-ray and electrotherapeutic 13 Years
apparatus and accessories thereto, medical, diagnostic
equipments, namely, Cat- Scan, Ultrasound Machines,
ECG Monitors, etc.
 2. Other Equipments. 15 Years
(j) Plant and Machinery used in manufacture of pharmaceuticals
and chemicals [NESD]
1. Reactors 20 Years
2. Distillation Columns -do-
3. Drying equipments/Centrifuges and Decanters -do-
4. Vessel/storage tanks -do-
(k) Plant and Machinery used in civil construction
1. Concreting, Crushing, Piling Equipments and Road 12 Years
Making Equipments
2. Heavy Lift Equipments
Cranes with capacity of more than 100 tons 20 Years
Cranes with capacity of less than 100 tons 15 Years
3. Transmission line, Tunneling Equipments [NESD] 10 Years
4. Earth-moving equipments 9 Years
5. Others including Material Handling /Pipeline/Welding 12 Years
Equipments [NESD]
(l) Plant and Machinery used in salt works [NESD] 15 Years

V. Furniture and fittings [NESD]

(i) General furniture and fittings 10 Years
(ii) Furniture and fittings used in hotels, restaurants and boarding 8 Years
houses, schools, colleges and other educational institutions,
libraries; welfare centres; meeting halls, cinema houses; theatres
and circuses; and furniture and fittings let out on hire for use on
the occasion of marriages and similar functions.

VI. Motor Vehicles [NESD]

1. Motor cycles, scooters and other mopeds 10 Years
2. Motor buses, motor lorries, motor cars and motor taxies used in a 6 Years
business of running them on hire
3. Motor buses, motor lorries and motor cars other than those used in a 8 Years
business of running them on hire
4. Motor tractors, harvesting combines and heavy vehicles -do-
5. Electrically operated vehicles including battery powered or fuel cell 8 Years
 powered vehicles

VII. Ships [NESD]

1. Ocean-going ships
(i) Bulk Carriers and liner vessels 25 Years
(ii) Crude tankers, product carriers and easy chemical carriers 20 Years
with or without conventional tank coatings
(iii) Chemicals and Acid Carriers :
(a) With Stainless steel tanks 25 Years
(b) With other tanks 20 Years
(iv) Liquified gas carriers 30 Years
(v) Conventional large passenger vessels which are used for -do-
cruise purpose also
(vi) Coastal service ships of all categories -do-
(vii) Offshore supply and support vessels 20 Years
(viii) Catamarans and other high speed passenger for ships or -do-
boats
(ix) Drill ships 25 Years
(x) Hovercrafts 15 Years
(xi) Fishing vessels with wooden hull 10 Years
(xii) Dredgers, tugs, barges, survey launches and other similar 14 Years
ships used mainly for dredging purposes
2. Vessels ordinarily operating on inland waters
(i) Speed boats 13 Years
(ii) Other vessels 28 Years

VIII. Aircrafts or Helicopters [NESD] 20 Years

IX. Railways sidings, locomotives, rolling stocks, tramways and railways 15 Years
used by concerns, excluding railway concerns [NESD]
X. Ropeway structures [NESD] 15 Years

XI. Office equipment [NESD] 5 Years

XII. Computers and data processing units [NESD]

(i) Servers and networks 6 Years
 (ii) End user devices, such as, desktops, laptops, etc. 3 Years

XIII. Laboratory equipment [NESD]

(i) General laboratory equipment 10 Years
(ii) Laboratory equipments used in educational institutions 5 Years

XIV. Electrical Installations and Equipment [NESD] 10 years

XV. Hydraulic works, pipelines and sluices [NESD] 15 Years

Notes.
1. "Factory buildings" does not include offices, godowns, staff quarters.
2. 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 asset has been sold, discarded, demolished or
destroyed.
3. The following information shall also be disclosed in the accounts, namely:
(i) depreciation methods used; and
(ii) the useful lives of the assets for computing depreciation, if they are different
from the life specified in the Schedule.
4. Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a
part of the asset is significant to total cost of the asset and useful life of that part is
different from the useful life of the remaining asset, useful life of that significant part
shall be determined separately.
5. 5[***]
6. The useful lives of assets working on shift basis have been specified in the Schedule
based on their single shift working. Except for assets in respect of which no extra shift
depreciation is permitted (indicated by NESD in Part C above), if an asset is used for
any time during the year for double shift, the depreciation will increase by 50% for that
period and in case of the triple shift the depreciation shall be calculated on the basis of
100% for that period.
7. From the date this Schedule comes into effect, the carrying amount of the asset as on
that date
(a) shall be depreciated over the remaining useful life of the asset as per this
Schedule;
(b) after retaining the residual value, shall be recognised in the opening balance of
retained earnings where the remaining useful life of an asset is nil.
8. "Continuous process plant" means a plant which is required and designed to operate for
twenty-four hours a day.
 a. Jeeps are classifiable as motor cars Crompton Engg. Co. (Madras) Ltd. v. CIT [1992]
193 ITR 483 (Mad.)/CAIT v. Good Hope Enterprises [1992] 197 ITR 236 (Ker.).
b. Trucks primarily used for assessee's own business and occasionally let out on hire will
not fall under this entry unless assessee carries on a business of running them on hire
CIT v. Manjeet Stone Co. [1991] 190 ITR 183 (Raj.); Vehicles plying between fixed
points for carriage of passengers fall under this entryITO v. Sarojini Transports (P.)
Ltd. [1986] 17 ITD 1014 (Mad.); Mobile crane mounted on a lorry falls under this
entryGujco Carriers v. CIT [2002] 122 Taxman 206 (Guj.); Rigs and Compressors
mounted on a lorry do not fall under this itemCIT v. Popular Borewell Service
[1992] 194 ITR 12 (Mad.); Motor vans are akin to motor lorries or motor buses
Circular No. 609, dated 29-7-1991/CIT v. Kodak Ltd. [1990] 181 ITR 275 (Bom.);
Ambulance van falls under this entryCIT v. Dr. K.R. Jayachandran [1995] 212 ITR
637 (Ker.); Air-conditioned vehicles fall under this entryCIT v. Urmila Goel [1986]
52 CTR (Delhi) 276.
c. 40 per cent if conditions of rule 5(2) are satisfied.
d. Company manufacturing insulated wires and cables is not covered under this entry
CIT v. Falcon Wires (P.) Ltd. [1980] 123 ITR 427 (Mad.).
e. Machinery used for dyeing, bleaching and printing of cloth manufactured by some other
person will not fall under this itemCIT v. Jaypee Dyeing House [1999] 239 ITR 418
(Bom.).
Applicable from the assessment year 2004-05.
f. Mere fact that assessee sold some cylinders during the previous year will not convert the
cylinders into stock-in-trade. The cylinders must be capable of containing gas, and
there is no requirement that the cylinders must be filled with gasChawla Architects &
Consultants (P.) Ltd. v. Asstt. CIT [1995] 54 ITD 330 (Bom.).
g. Petroleum company distributing gas for cooking purpose is a 'mineral oil concern'CIT
v. Burmah Shell Oil Storage & Distribution Co. of India Ltd. [1978] 115 ITR 891
(Cal.); Vegetable oil is not a 'mineral oil'CIT v. Distillers Trading Corporation Ltd.
[1982] 137 ITR 894 (Delhi).
1. Corresponds to Schedule XIV of the 1956 Act.
2. Enforced with effect from 1-4-2014.
3. Substituted for clauses (i) to (iii) vide Notification No. GSR 237(E) [F. No. 17/60/2012-
CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to their substitution, clauses (i) to (iii)
read as under :
"(i) In case of such class of companies, as may be prescribed and whose financial
statements comply with the accounting standards prescribed for such class of companies
under section 133 the useful life of an asset shall not normally be different from the
useful life and the residual value shall not be different from that as indicated in Part C,
provided that if such a company uses a useful life or residual value which is different
from the useful life or residual value indicated therein, it shall disclose the justification
for the same.
(ii) In respect of other companies the useful life of an asset shall not be longer than the
useful life and the residual value shall not be higher than that prescribed in Part C.
(iii) For intangible assets, the provisions of the Accounting Standards mentioned under
sub-para (i) or (ii), as applicable, shall apply."
4. Substituted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-
2014, w.e.f. 1-4-2014. Prior to its substitution, clause (b) read as under :
"(b) Continuous process plant for which no special rate has been prescribed 8
under (ii) below [NESD] Years"
5. Omitted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014,
w.e.f. 1-4-2014. Prior to its omission, Paragraph 5 read as under :
"5. Depreciable amount is the cost of an asset, or other amount substituted for cost, less
its residual value. Ordinarily, the residual value of an asset is often insignificant but it
should generally be not more than 5% of the original cost of the asset."

[As amended by Finance Act, 2015]