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Depreciation in India

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DEPRECIATION RATES in India

A.Y:2008-09 Depriciation rates as per Income Tax Act.

  • 005% on Buildings (residential)
  • 010% on Buildings (Office, factory etc.,)
  • 100% on Buildings (temporary etc.,)
  • 010% on Furniture, fittings & electrical fittings)
  • 015% on Plant & Machinery, motor cars etc.,
  • 020% on Ships, vessels etc.,
  • 030% on Vehicles on hire, moulds etc.,
  • 040% on Aeroplanes, life saving equipments etc.,
  • 050% on Glass or plastic containers etc.,
  • 060% on Computers, software, books etc.,
  • 080% on Energy saving devices etc.,
  • 100% on Annual publications etc.,
  • 025% on Intangible assets:

DEPRECIATION for companies in India

In case of companies, the calculations of depreciation are available under three different sections i.e. Section 350 and section 205 (2)(b) of the Companies Act and Section 32 of the Income Tax Act, simultaneously.

In case of Section 350 of the Companies Act, calculations are done under Written down Value Method or Straight Line Method according to the rates specified in Schedule XIV, depending on the choice of the user.

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