Depreciation Rates under Income Tax
Block-wise depreciation rates for CA Inter. Additional depreciation rules and Companies Act comparison.
AY 2026-27 WDV Method
Building
| Asset | Rate |
|---|---|
| Residential buildings (non-business) | 5% |
| Buildings used for business/profession | 10% |
| Buildings for cold storage, hotels, etc. | 10% |
| Temporary wooden structures | 40% |
Furniture & Fittings
| Asset | Rate |
|---|---|
| Furniture and fittings | 10% |
| Electrical fittings | 10% |
Plant & Machinery (15%)
| Asset | Rate |
|---|---|
| General plant and machinery | 15% |
| Ships, vessels | 15% |
| Office equipment | 15% |
Plant & Machinery (30%)
| Asset | Rate |
|---|---|
| Motor buses, lorries, taxis (commercial) | 30% |
| Motor cars (not for hire) | 15% |
| Moulds used in rubber/plastic | 30% |
| Air pollution control equipment | 40% |
Plant & Machinery (40%)
| Asset | Rate |
|---|---|
| Computers and software | 40% |
| Energy saving devices | 40% |
| Books (annual publications) | 40% |
Intangible Assets
| Asset | Rate |
|---|---|
| Know-how, patents, copyrights | 25% |
| Trademarks, licenses | 25% |
| Franchises | 25% |
Additional Depreciation (Section 32(1)(iia))
| Condition | Rate | Note |
|---|---|---|
| New plant & machinery (manufacturing) | 20% | In addition to normal depreciation |
| Acquired and installed after 31.3.2005 | 20% | Not for office/residential/cars/ships |
| New manufacturing unit in backward area | 35% | Additional depreciation for specified states |
Key WDV Rules
- • Depreciation calculated on Written Down Value (WDV)
- • Full depreciation if asset used for 180+ days
- • Half depreciation if asset used for <180 days
- • Block of assets concept - individual asset tracking not required
- • No depreciation on land
- • Sale value deducted from block WDV
- • Short-term capital gain if block WDV becomes negative
Companies Act 2013 Rates (Schedule II)
| Asset | SLM | WDV |
|---|---|---|
| Factory buildings | 3.34% | 10% |
| Non-factory buildings | 1.63% | 5% |
| Plant & Machinery (general) | 4.75% | 15% |
| Computers | 16.21% | 40% |
| Furniture & fittings | 6.33% | 15% |
| Vehicles | 9.50% | 30% |
| Software | 16.21% | 40% |
Note: Companies Act uses useful life approach. Rates above are indicative based on useful life.
Related: Tax Rates AY 2026-27
Complete income tax slabs