Rule – Old App I OLD APPENDIX I

Published by Law@HostBooks at Last Updated on August 9th, 2018 at 4:22 pm Published on April 2, 2018

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¹[OLD APPENDIX I

[Applicable for assessment years 1988-89 to 2002-03]

[See rule 5]

TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE

Block of assets			Depreciation allowance as percentage of written down value
1			2
²[PART A TANGIBLE ASSETS]
I. BUILDINGS [See Notes 1 to 3 below the Table]
(1) Buildings other than those covered by sub-item (3) below which are used mainly for residential purposes			5
(2) ³Buildings which are not used mainly for residential purposes and which are not covered by sub-item (3) below			10
(3) (i) Buildings used as hotels
(ii) Buildings with dwelling units each with plinth area not exceeding 80 square metres			20
⁴[(iii) New buildings, other than the buildings covered under entry (ii) of this item, with dwelling units each with plinth area not exceeding 80 square metres acquired on or after the 1st day of April, 1999 but before the 1st day of April, 2002			40]
(4) Purely temporary erections such as wooden structures			100
II. FURNITURE AND FITTINGS
(1) Rate applicable to furniture and fittings not covered by sub-item (2) below			10
(2) Furniture and fittings used in hotels, restaurants and ⁵boarding 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			15
III. ⁶MACHINERY AND PLANT
(1) Machinery and plant other than those covered by ⁷[sub-items (1A), (2)] and (3) below			⁸[25]
⁹[(1A) Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990			20]
(2) (i) Aeroplanes—Aeroengines
(ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire¹⁰			¹¹[40]
¹²[(iia) 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 business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 3A below the Table]			40
(iib) New commercial vehicle which is acquired on or after 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 3A below the Table]			60
(iic) 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 (1) of section 32 [See Note 3A below the Table]			60]
¹³[(iid) 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 of business or profession [See Note 3A below the Table]			50]
(iii) Moulds used in rubber and plastic goods factories			¹⁴[40]
(iv) Air pollution control equipments, being—
(a) Electrostatic precipitation systems
(b) Felt-filter systems
(c) Dust collector systems			¹⁵[100]
(d) Scrubber-counter current/venturi/packed-bed/ cyclonic scrubbers
¹⁶[(e) Ash handling system and evacuation system]
(v) Water pollution control equipments, 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			¹⁵[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

¹⁷[(vi) (a)] Solidwaste control equipments, being—caustic/lime/chrome/mineral/cryolite recovery system			¹⁸[100]
¹⁹[(b) Solidwaste recycling and resource recovery systems]
²⁰[(vii) Machinery and plant, used in semi-conductor industry 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 (iv), (v) and (vi) of this sub-item and sub-item (3) below.			40]
²¹[(2A) Containers made of glass or plastic used as re-fills			50]
²²[(2B) Computers			60]
²³[(2C) 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 3B below the Table]			50]
(3) (i) Wooden parts used in artificial silk manufacturing machinery			100
(ii) Cinematograph films—bulbs of studio lights			100
(iii) 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			100
(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
(e) Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters			100
(f) Maximum demand indicator and clamp on power meters
(g) Exhaust gases analyser
(h) Fuel oil pump test bench
C. Waste heat recovery equipments:
(a) Economisers and feed water heaters
(b) Recuperators and air pre-heaters
(c) Heat pumps			100
(d) Thermal energy wheel for high and low temperature waste heat recovery
D. Co-generation systems:
(a) Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers			100
(b) Vapour absorption refrigeration systems
(c) Organic rankine cycle power systems
(d) Low inlet pressure small steam turbines
E. Electrical equipments:
(a) Shunt capacitors and synchronous condenser systems
(b) Automatic power cut off devices (relays) mounted on individual motors
(c) Automatic voltage controller			100
(d) Power factor controller for AC motors
(e) Solid state devices for controlling motor speeds
²⁴[(f) Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water)]
F. Burners:
(a) 0 to 10 per cent excess air burners
(b) Emulsion burners			100
(c) Burners using air with high pre-heat temperature (above 300⁰C)
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 controllers			100
(e) Coal based producer gas plants
(f) Fluid drives and fluid couplings
(g) Turbo charges/super-charges
(iv) Flour mills—Rollers			100
²⁵(v) Gas cylinders including valves and regulators			100
(vi) Glass manufacturing concerns—Direct fire glass melting furnaces			100
(vii) Iron and steel industry—Rolling mill rolls			100
(viii) Match factories—Wooden match frames			100
²⁶(ix) Mineral oil concerns:
(a) Plant used in field operations (above ground) distribution—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			100
(x) Mines and quarries :
(a) Tubs, winding ropes, haulage ropes and sand stowing pipes			100
(b) Safety lamps
(xi) Salt works—Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material			100
(xii) Sugar works—Rollers			100
(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			100
(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
(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			100
(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
²⁷[(4) (i) Books owned by assessees carrying on a profession			100
(ii) Books owned by assessees carrying on business in running lending libraries			100]
²⁸IV. SHIPS
(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			²⁹[25]
(2) Vessels ordinarily operating on inland waters, not covered by sub-item (3) below			²⁹[25]
(3) Vessels ordinarily operating on inland waters being speed boats [see Note 4 below the Table]			²⁹[25]
³⁰[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.

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), (2) or (3) 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.

³¹[3A. “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).]

³²[3B. “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.]

4. “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.