RATES AT WHICH DEPRECIATION SHALL BE ALLOWABLE FROM ASSESSMENT YEAR 2004-2005 ONWARDS Rate of Number Nature of Asset depreciation

Block 1 Buildings - Residential buildings other than hotels and boarding houses Buildings - Office, factory, godowns or buildings which are not mainly Block 2 used for residential purpose [it covers hotels and boarding houses but does not cover those which are covered under Blocks 1 and 3] Buildings - the following buildings : a. Buildings acquired on or after September 1,2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under section 80-IA (4)(i) b. Temporary erections such as wooden structures Block 4 Furniture - Any furniture / fittings including electrical fittings Plant and Machinery - Any plant or machinery [not covered by block 6, 7, Block 5 8, 9, 10 or 11] and any ship or vessels Block 6 Plant and Machinery - Motor cars (other than those used in a business of running them on hire) acquired or put to use on or after April 1,1990 Plant and Machinery * * * * * * * * Buses, Lorries, Taxies used in the business of running them on hire, aeroplanes, machinery used in semi-conductor industry, moulds used in rubber and plastic goods factories, plant and machinery which satisfy conditions of rule 5(2). Further it includes commercial vehicle (acquired after September 30,1998 but before April 1,1999 and put to use before April 1,1999) and (with effect from the Assessment Year 2004-05) life saving medical equipment. 15% 25% 20 % 5%

10%

Block 3

100%

Block 7

40%

Plant and Machinery - Containers made of glass or plastic used as refills and the following a. new commercial vehicle acquired during 2001-2002 and put to use before March 31, 2002 for the purpose of business or profession; and b. machinery / plant used in weaving, processing and garment sector of Textile industry which is purchased under Technology Upgradation Fund Scheme during April 1, 2001 and March 31, 2004

Block 8

50%

Plant and Machinery - Computers including computer software and new commercial vehicle acquired in replacement of condemned vehicle acquired in replacement of condemned vehicle of 15 years of age which is Block 9 put to use before April 1,1999 (if acquired during October 1,1998 and March 31, 1999) or before April 1, 2000 (if acquired during 1999 - 2000). It also includes books (other than annual publications) owned by a professional. Plant and Machinery * * * * * Energy saving devices; renewal energy devices; rollers in flour mills, sugar works and steel industry; gas cylinders; plant used in field operations by mineral oil concerns; direct fire glass melting furnaces.

60%

Block 10

80%

Plant and Machinery * * * * * Block 11 Air pollution control equipments; water pollution control equipments; solid waste control equipments, recycling and resource recovery systems; machinery acquired and installed on or after September 1,2002 in a water supply project or water treatment system or for the purpose of providing infrastructure facility; wooden parts used in artificial silk manufacturing machinery; cinematograph films, bulbs of studio lights; wooden match frames, some plants used in mines, quarries and salt works; books ( being annual publications ) owned by assesses carrying on a profession or books (may or may not be annual publications ) owned by a person carrying on business in running lending libraries

* * * * *

100%

Know-how - Know-how acquired after March 31, 1998 ["Know-how" means any industrial information or technique likely to assist in the Block 12 manufacture or processing of goods or in the working of a mine, oil-well or other sources of mineral deposits (including searching for discovery or testing of deposits for the winning of access thereto)] Block 13 Patents - Patents acquired after March 31, 1998 Block 14 Copyrights - Copyrights acquired after March 31, 1998 Block 15 Trade Marks - Trade marks acquired after March 31,1998 Block 16 Licences - Licences acquired after March 31, 1998 Block 17 Franchises - Franchises acquired after March 31, 1998 Block 18 Other rights - Any other business or commercial rights of similar nature acquired after March 31, 1998

25%

25% 25% 25% 25% 25% 25%