Skip to main content Skip to search
Rates of Depreciation as Per Income Tax Act, 1961

Rates of Depreciation as Per Income Tax Act, 1961

Tax Kundali Team

Rates of Depreciation as per Income Tax Act, 1961 for the assessment year 2020-2021 on Building, Plant & Machinery, Furniture & Fittings, Ships & on Intangibles Assets.
Classification of Depreciable assets
a. Tangible Assets being buildings, machinery, plant or furniture;
b. Intangible Assets being know-how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of similar nature; in respect of which the same percentage of depreciation is prescribed.
Conditions to claim depreciation:-
1. Assets should be used for business/profession purposes of the assessee
2. The assessee should be the owner of such assets. The assets may be owned wholly or partially. If the assessee is not the owner of the assets, he is not entitled to depreciation.

         Rates of depreciation

Block of assets                                       Rate(% of WDV)                                                                                                                                                           
1. BUILDING
(i) Residential 5
(ii) General 10
(iii) Temporary Structure 40
2. FURNITURE & FITTING 10
3. PLANT & MACHINERY
(i) Motor Vehicles
(a) Used in a business of running them on hire 30
If above(a) Acquired & put to use between 23-08-2019 to 31-03-2020 45
(b) Other motor vehicles 15
If above(b) Acquired & put to use between 23-08-2019 to 31-03-2020 30
(ii) Ships 20
(iii) Aircraft 40
(iv) Computer / Laptop(Including Computer Software) 40
(v) Books
(a) Owned by assesses carrying on a profession 40
(b) Libraries business 40
(vi) Windmills & its equipments
(a) Installed before 01-04-2014 15
(b) Installed on of after 01-04-2014 40
(vii) Pollution control equipments 40
(viii) Other plant & machinery 15
(ix) Oil wells 15
(x) Aeroplanes 40
(xi) Moulds used in rubber and plastic goods factories 30
4 INTANGIBLE ASSETS 25

Note:-
1. If the asset is put to use for less than 180 days during the previous year, then depreciation claim shall be restricted to 50 percent of the normal depreciation. Full depreciation as per the prescribed rate is allowed if the asset is put to use for 180 days or more during the previous year. This restriction applies for the first year of acquisition and not in subsequent years.
2. Buildings include roads, bridges, culverts, wells, and tube-wells.
3. Intangible assets include know-how, patents, copyrights, trademark, licenses, franchises, or any other business or commercial rights of similar nature.

Read more

Protecting yourself from the spread COVID-19

You can reduce your chances of being infected or spreading COVID-19 by taking some simple precautions:

  • Regularly and thoroughly clean your hands with an alcohol-based hand rub or wash them with soap and water. Why? Washing your hands with soap and water or using alcohol-based hand rub kills viruses that may be on your hands.
  • Maintain at least 1 meter (3 feet) distance between yourself and others. Why? When someone coughs, sneezes, or speaks they spray small liquid droplets from their nose or mouth which may contain viruses. If you are too close, you can breathe in the droplets, including the COVID-19 virus if the person has the disease.
  • Avoid going to crowded places. Why? Where people come together in crowds, you are more likely to come into close contact with someone that has COIVD-19 and it is more difficult to maintain a physical distance of 1 meter (3 feet).
  • Avoid touching eyes, nose, and mouth. Why? Hands touch many surfaces and can pick up viruses. Once contaminated, hands can transfer the virus to your eyes, nose, or mouth. From there, the virus can enter your body and infect you.
  • Make sure you, and the people around you, follow good respiratory hygiene. This means covering your mouth and nose with your bent elbow or tissue when you cough or sneeze. Then dispose of the used tissue immediately and wash your hands. Why? Droplets spread viruses. By following good respiratory hygiene, you protect the people around you from viruses such as cold, flu, and COVID-19.
  • Stay home and self-isolate even with minor symptoms such as cough, headache, mild fever, until you recover. Have someone bring you supplies. If you need to leave your house, wear a mask to avoid infecting others. Why? Avoiding contact with others will protect them from possible COVID-19 and other viruses.
  • If you have a fever, cough and difficulty breathing, seek medical attention, but call by telephone in advance if possible and follow the directions of your local health authority. Why? National and local authorities will have the most up to date information on the situation in your area. Calling in advance will allow your health care provider to quickly direct you to the right health facility. This will also protect you and help prevent the spread of viruses and other infections.

Advice on the safe use of alcohol-based hand sanitizers:

To protect yourself and others against COVID-19, clean your hands frequently and thoroughly. Use an alcohol-based hand sanitizer or wash your hands with soap and water. If you use an alcohol-based hand sanitizer, make sure you use and store it carefully.

  • Keep alcohol-based hand sanitizers out of children’s reach. Teach them how to apply the sanitizer and monitor its use.
  • Apply a coin-sized amount on your hands. There is no need to use a large amount of the product.
  • Avoid touching your eyes, mouth, and nose immediately after using an alcohol-based hand sanitizer, as it can irritate.
  • Hand sanitizers recommended to protect against COVID-19 are alcohol-based and therefore can be flammable. Do not use it before handling fire or cooking.
  • Under no circumstance, drink, or let children swallow an alcohol-based hand sanitizer. It can be poisonous.
  • Remember that washing your hands with soap and water is also effective against COVID-19.

Read more

Tax Rates – Assessment Year 2020-21

Individual (age < 60 Yrs)

Up to Rs. 2,50,000                                                        Nil

Rs. 2,50,001 to Rs. 5,00,000                                       5%

Rs. 5,00,001 to Rs. 10,00,000                                     20%

Above Rs. 10,00,000                                                    30%

*Surcharge:

10% if total income exceeds Rs. 50 lacs,

15% if total income exceeds Rs. 1 Crore but doesn’t exceed Rs. 2 Crore,

25% if total income exceeds Rs. 2 Crore but doesn’t exceed Rs. 5 Crore,

37% if total income exceeds Rs. 5 Crore

* Health & Education cess at 4% of Income Tax & Surcharge

* Relief u/s 87A up to Rs. 12,500 for resident individuals having total income of up to Rs. 5,00,000

 

Senior Citizen(Age=>60 but Less than 80)

Up to Rs. 3,00,000                                                   Nil

Rs. 3,00,001 to Rs. 5,00,000                                  5%

Rs. 5,00,001 to Rs. 10,00,000                              20%

Above Rs. 10,00,000                                            30%

*Surcharge:

10% if total income exceeds Rs. 50 lacs,

15% if total income exceeds Rs. 1 Crore but doesn’t exceed Rs. 2 Crore,

25% if total income exceeds Rs. 2 Crore but doesn’t exceed Rs. 5 Crore,

37% if total income exceeds Rs. 5 Crore

* Health & Education cess at 4% of Income Tax & Surcharge

* Relief u/s 87A up to Rs. 12,500 for resident individuals having total income of up to Rs. 5,00,000

 

Super Senior Citizen( Age =>80 Yrs)

Up to Rs. 5,00,000                                                     Nil

Rs. 5,00,001 to Rs. 10,00,000                                 20%

Above Rs. 10,00,000                                                30%

*Surcharge:

10% if total income exceeds Rs. 50 lacs,

15% if total income exceeds Rs. 1 Crore but doesn’t exceed Rs. 2 Crore,

25% if total income exceeds Rs. 2 Crore but doesn’t exceed Rs. 5 Crore,

37% if total income exceeds Rs. 5 Crore

* Health & Education cess at 4% of Income Tax & Surcharge

 

Domestic Company

Tax Rate                                                                  30% **

MAT                                                                        18.5%

*Surcharge: 7% if total income exceeds Rs. 1 Crore and 12% if total income exceeds Rs. 10 Crores

* Health & Education cess at 4% of Income Tax & Surcharge

** Tax Rate is 25% if turnover or gross receipt of the company in the previous year 2017-18 doesn’t exceed Rs. 400 crore

 

Foreign Company

Tax Rate                                                                 40%

*Surcharge: 2% if total income exceeds Rs. 1 Crore and 5% if total income exceeds Rs. 10 Crores

* Health & Education cess at 4% of Income Tax & Surcharge

 

Partnership Firm

Tax Rate                                                                        30%

*Surcharge at 12% if total income exceeds Rs. 1 Crore.

* Health & Education cess at 4% of Income Tax & Surcharge

For more details, you can check here: Taxkundali

Read more

TDS Rate Chart For F.Y 2019-20

Article compiles Section wise TDS Rates / TDS Rate Chart for Financial Year 2019-20 or Assessment Year 2020-21 with Nature of Payment, Threshold Limit and Percentage TDS rate applicable to Individual, HUF and to other category of Assessees.

    TDS rate forTDS rate forTDS rate for
Sl. No.Nature of PaymentSectionBasic Cut-off
(Rs.) p.a.
Individual and HUFOther than Individual/HUFIf PAN is not submitted/Invalid PAN
1Payment of Salaries by
Employers
192Slab rateSlab rateNot applicable30%
2Premature payment by PF
Organization from EPF A/c
(i.e. before 5 Years).
192A50,000.0010%Not applicable20%
3Payment of Interest on
Securities by company.
19310,000.0010%10%20%
4Payment of Dividend other
than dividend as referred to
Section 115O by company
(i.e. Dividend on which
Dividend Distribution Tax is
not
paid)
1942,500.0010%10%20%
5Payment of Interest by
bank
194A40,000.00
(Non Sr.Citizen)
50,000.00
(Sr. Citizen)
10%10%20%
6Payment of Interest by
others
194A5,000.0010%10%20%
7Payment of prize from
Wining from Lotteries by
any person.
194B10,000.0030%30%30%
9Payment of prize from
Wining from Horse Race by
any person.
194B10,000.0030%30%30%
9Payment to Contractors by
any person.
194C30,000.00
(Single bill) or
1 Lakh
aggregate
bills
during the year.
1%2%20%
10Payment to Transporter
Covered u/s. 44E and
submit declaration in
prescribed format. (i.e.
owning less than 10
goods carriages)
194C-0020%
11Payment to Transporter not
covered u/s. 44E
(i.e. owning more than 10
goods carriages)
194C30,000.00
(Single bill ) or
75,000.00
aggregate
bills during the
year.
1%2%20%
12Payment of Insurance
Commission to agents by
Insurance Company.
194D15,000.005%10%20%
13Payment in respect of
maturity of Life Insurance
Policy by Life
Insurance Company.
194DA1 Lakh1%1%20%
14Payment to NRI sportsman
or association by any person
or
organization
194E-20%20%20%
15Payment out of deposit under
National Saving
Scheme (NSS)
194EE2,500.0010%10%20%
16Payment with respect to
repurchase of units by
Mutual Fund Companies.
194F-20%20%20%
17Payment of Lottery
Commission
194G15,000.005%5%20%
18Payment of commission or
Brokerage
194H15,000.005%5%20%
19Payment of rent on land,
building, furniture and
fittings.
194I240,000.0010%10%20%
20Payment of rent on plant,
machinery or equipments.
194I240,000.002%2%2%
21Payment made on account of
transfer of immovable
property other
than agriculture land.
194IA50 Lakh1%1%20%
22Rent payable by
individual not covered
u/s. 194I for land,
building, furniture and
fittings
194IB50,000.00 PM5%5%20%
23Payment of Professional
Fees other than call
centers
194J30,000.0010%10%20%
24Payment of Professional
Fees to call centers.
194J30,000.002%2%20%
25Compensation on transfer of
certain immoveable property
than Agriculture
Land
194LA250,000.0010%10%20%

Read more