Where the assesse is
electricity undertaking: - an undertaking engaged in generation or generation
and distribution of power is entitled to claim depreciation under any of two
following methods.
Written down value
Straight line method.
Where the assesse is any
other assesse: - any other assessee can claim depreciation only on written down
value method.
Claim of depreciation
obligatory: - the assessing officer has to allow depreciation even if it not
claimed by the assessee. Claiming of depreciation is now obligatory.
Allow ability of
depreciation: - depreciation is allowed to an assessee in case it is
established that business either production start or not
Rates of depreciation
under Block system
Residential purpose
building- 5%
Nonresidential purpose
building- 10%
Furnitures and fitting
including electricity fittings- 10%
Machinery- 15%
Motor Car- 15%
Aeroplanes-40%
New commercial vehicles-
50%
Computers- 60%
Ocean going ships- 20%
Vessels- 20%
Patents, copyright,
trademark, license, or similar nature intangible assets- 25%
