Rs. Bauxite crushing and grinding section [NESD], 11. You can claim Rs.20,000 (i.e. 9. Projected Revenue from Intangible Asset (C). Depreciation rates 3. Depreciation as per Income Tax Act, 1961- Chart Here is the complete chart, which shows the rate of depreciation on fixed assets as per Income Tax Act. 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. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire, 3. 10%. Water treatment system includes system for desalination, demineralisation and purification of water. section 80-IA, (4)  Purely temporary erections such as wooden structures, Furniture and fittings including electrical fittings [See Note 5 below the Table], (1)   Machinery and plant other than those covered by sub-items (2), (3) and (8) below : 2. In other cases, depreciation is allowed at either two thirds or one third of the normal rate, if the addition is made for less than six or three months, respectively. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire, 4. Rate of depreciation shall be 40% if conditions 1-4-2014. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 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. (ii)  Furniture and fittings used in hotels, restaurants and boarding 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. 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. The tax base is Cost minus Cumulative Depreciation of the asset is Rs. Income Tax Depreciation is a positive decline in the real value of tangible assets due to consumption, wear and tear or obsolescence. Also know depreciation as per companies act 2013 for fy 2018-19. 4. 1 SCHEDULE II 2 (See section 123)USEFUL … 600 Crores, in the following manner:—. 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. (ii)  Reinforced concrete pipelines and surge tanks steel pipelines, sluice gates, steel surge (tanks), hydraulic control valves and other hydraulic works. Substituted vide Notification No. Intangible assets 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 (No. Others including Material Handling /Pipeline/Welding Equipments [NESD], (l)  Plant and Machinery used in salt works [NESD]. (ii)  Reinforced concrete pipelines and surge tanks steel pipelines, sluice gates, steel surge (tanks), hydraulic control valves and other hydraulic works. Total Depreciation allowed as per Income-tax Act, 1961 Written down value on the last day of the previous year Advisory: Information relates to the law prevailing in the year of publication/ as indicated . [Date of Commencement: 1st July, 1995.] 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). (d)  Building and civil engineering works of permanent character, not mentioned above, (ii)  Containing Thermo-electric generating plant, (iii)  Containing Hydro-electric generating plant, (iv)  Temporary erection such as wooden structures, (e)  Transformers, transformer (Kiosk) sub-station equipment & other fixed apparatus (including plant foundations), (i)  Transformers (including foundations) having a rating of 100 kilo volt amperes and over, (f)  Switchgear including cable connections, (i)  Underground cable including joint boxes and disconnectioned boxes, (i)  Lines on fabricated steel operating at nominal voltages higher than 66 kilo volts, (ii)  Lines on steel supports operating at nominal voltages higher than 13.2 kilo volts but not exceeding 66 kilo volts, (iii)  Lines on steel or reinforced concrete supports, (iii)  Internal wiring including fittings and apparatus, (i)  Radio and high frequency carrier system. depreciation rate chart, depreciation rates on fixed assets, income tax depreciation rates for ay 2018-19, depreciation rates for ay 2017-18, depreciation rates for power generating units under income tax act, office equipment depreciation rate, Depreciation rates for power generating units as per Income Tax Act 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. Depreciation as per Income Tax Act & Companies Act. Time used for creation of Intangible Assets, Assuming that the Total revenue to be generated out of Intangible Assets over the period would be Rs. "Factory buildings" does not include offices, godowns, staff quarters. 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. 600 Crores, in the following manner:—. section 80-IA [See Notes 4 and 9 below the Table], (8)  (i) Wooden parts used in artificial silk manufacturing machinery, (ii)  Cinematograph films - bulbs of studio lights, (iii)  Match factories - Wooden match frames, (a)  Tubs, winding ropes, haulage ropes and sand stowing pipes, (v)  Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material, (vii)  Iron and steel industry - Rolling mill rolls, (b)  Flameless furnaces and continuous pusher type furnaces, (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). Electrically operated vehicles including battery powered or fuel cell powered vehicles, (ii)  Crude tankers, product carriers and easy chemical carriers with or without conventional tank coatings, (v)  Conventional large passenger vessels which are used for cruise purpose also, (vi)  Coastal service ships of all categories, (vii)  Offshore supply and support vessels, (viii)  Catamarans and other high speed passenger for ships or boats, (xii)  Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes, 2. Railways sidings, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD], XII. Omitted vide Notification No. 3. 5/Rs. 7. Without prejudice to the foregoing provisions of paragraph 1,—. Corresponds to Schedule XIV of the 1956 Act. Application of the Act 2. Subject to Parts A and B above, the following are the useful lives of various tangible assets: (a)  Buildings (other than factory buildings) RCC Frame Structure, (b)  Buildings (other than factory buildings) other than RCC Frame Structure, (e)  Others (including temporary structure, etc. Electrical Installations and Equipment [NESD], XV. “Factory buildings” does not include offices, godowns, staff quarters. Total projected revenue from the Intangible Assets as provided to the project lender at the time of financial closure/agreement. 6. Depreciation refers to the decrease in … "Computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device. Motor tractors, harvesting combines and heavy vehicles, 5. 1-4-2014. ), II. The normal depreciation rate for any general plant and machinery is 15%. The date this Schedule comes into effect, the assessee can pay Rs depreciation disallowed. 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