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[NEW APPENDIX I
[Effective from assessment year 2006-07 onwards]
[See rule 5]
TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE
Block of assets Depreciation
allowance as
percentage
of written
down value
1 2
PART A
TANGIBLE ASSETS
I. Building [See Notes 1 to 4 below this Table]
(1) Buildings which are used mainly for residential purposes except hotels and 5
boarding houses
(2) Buildings other than those used mainly for residential purposes and not covered 10
by sub-items (1) above and (3) below
(3) Buildings acquired on or after the 1st day of September, 2002 for installing [40]
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
(4) Purely temporary erections such as wooden structures [40]
II. Furniture and fittings
Furniture and fittings including electrical fittings 10
[See Note 5 below this Table]
III. Machinery and Plant
(1) Machinery and plant other than those covered by sub-items (2), (3) and (8) 15
below :
1[(2) (i) Motor cars, other than those used in a business of running them on hire, 15
acquired or put to use on or after the 1st day of April, 1990 except those covered
under entry (ii);
(ii) Motor cars, other than those used in a business of running them on hire, 30]
acquired on or after the 23rd day of August, 2019 but before the 1st day of April,
2020 and is put to use before the 1st day of April, 2020.
(3) (i) Aeroplanes - Aeroengines 40
2[(ii)(a) Motor buses, motor lorries and motor taxis used in a business of 30
running them on hire other than those covered under entry (b).
(b) Motor buses, motor lorries and motor taxis used in a business of running 45]
them on hire, acquired on or after the 23rd day of August, 2019 but before the
1st day of April, 2020 and is put to use before the 1st day of April, 2020.
(iii) Commercial vehicle which is acquired by the assessee on or after the 1st day 40
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 this Table]

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(iv) New commercial vehicle which is acquired on or after the 1st day of [40]
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 this Table]
(v) New commercial vehicle which is acquired on or after the 1st day of April, 4[40]
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 this Table]
(vi) New commercial vehicle which is acquired on or after the 1st day of April, [40]
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 this
Table]
[(via) New commercial vehicle which is acquired on or after the 1st day of [40]
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]
(vii) Moulds used in rubber and plastic goods factories 30
(viii) Air pollution control equipment, being—
(a) Electrostatic precipitation systems
(b) Felt-filter systems
(c) Dust collector systems [40]
(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 [40]
(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
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(q) Activated carbon column

(x) (a) Solidwaste, control equipment being - [40]

caustic/lime/chrome/mineral/cryolite recovery systems
(b) Solidwaste recycling and resource recovery systems

(xi) Machinery and plant, used in semi-conductor industry covering all 30

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
(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
(k) Ventilator other than those used with anaesthesia
(l) Gamma knife
(m) Bone Marrow Transplant Equipment including silastic long
standing intravenous catheters for chemotherapy
(n) Fibre optic 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 [40]
(5) Computers including computer software (See Note 7 below this Table) [40]
(6) Machinery and plant, used in weaving, processing and garment sector of textile [40]
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 this Table]
(7) Machinery and plant, acquired and installed on or after the 1st day of September, [40]
2002 in a water supply project or a water treatment system and which is put to

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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 this Table]
(8) (i) Wooden parts used in artificial silk manufacturing machinery
(ii) Cinematograph films - bulbs of studio lights
(iii) Match factories - Wooden match frames
(iv) Mines and quarries :
(a) Tubs winding ropes, haulage ropes and sand stowing pipes [40]
(b) Safety lamps
(v) Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy
or clayey material or any other similar material

(vi) Flour mills - Rollers

(vii) Iron and steel industry - Rolling mill rolls [40]
(viii) Sugar works - Rollers

(ix) Energy saving devices, being—

A. Specialised boilers and furnaces :
(a) Ignifluid/fluidized bed boilers
(b) Flameless furnaces and continuous pusher type furnaces [40]
(c) Fluidized bed type heat treatment furnaces
(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 [40]
(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 analyzer
(h) Fuel oil pump test bench
C. Waste heat recovery equipment:
(a) Economisers and feed water heaters
(b) Recuperators and air pre-heaters
(c) Heat pumps [40]
(d) Thermal energy wheel for high and low temperature waste heat
recovery
D. Co-generation systems:
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(a) Back pressure pass out, controlled extraction, extraction-cum-

condensing turbines for co-generation along with pressure
boilers
(b) Vapour absorption refrigeration systems [40]
(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 [40]
(h) Flexible AC Transmission (FACT) devices - 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 [40]
(c) Burners using air with high pre-heat temperature (above
300°C)
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 demand controllers [40]
(e) Coal based producer gas plants
(f) Fluid drives and fluid couplings
(g) Turbo charges/super-charges
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(h) Sealed radiation sources for radiation processing plants

(x) Gas cylinders including valves and regulators [40]
(xi) Glass manufacturing concerns - Direct fire glass melting furnaces 60
(xii) Mineral oil concerns:
(a) Plant used in field operations (above ground) distribution - [40]
Returnable packages
(b) Plant used in field operations (below ground), but not including
kerbside pumps including underground tanks and fittings used
in field operations (distribution) by mineral oil concerns
[(c) Oil wells not covered in clauses (a) and (b)] 15
(xiii) Renewable 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 [40]
(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 water pumping and
other applications
(l) Wind mills and any specially designed devices which run on
wind mills [installed on or after the 1st day of April, 2014]
(m) Any special devices including electric generators and pumps
running on wind energy [installed on or after the 1st day of
April, 2014]
(n) Biogas-plant and biogas-engines
(o) Electrically operated vehicles including battery powered or [40]
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 [40]
(b) Books, other than those covered by entry (a) above [40]
(ii) Books owned by assessees carrying on business in running lending [40]
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libraries
IV. Ships
(1) Ocean-going ships including dredgers, tugs, barges, survey launches and other 20
similar ships used mainly for dredging purposes and fishing vessels with wooden
hull
(2) Vessels ordinarily operating on inland waters, not covered by sub-item (3) below 20
(3) Vessels ordinarily operating on inland waters being speed boats [See Note 10 20
below this Table]
PART B
INTANGIBLE ASSETS
Know-how, patents, copyrights, trademarks, licences, franchises or any
other business or commercial rights of similar nature 25
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 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 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 assigned to them in section 2 of the Motor Vehicles Act, 1988 (59
of 1988).
7. "Computer software" means any computer program 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 kilometres 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.]

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