Rule – New App I, New Appendix I
April 2, 2018
Rule – Old App I, OLD APPENDIX I
April 2, 2018

Rule – Old App I, OLD APPENDIX I


[Applicable for assessment years 1984-85 to 1987-88]


[See rule 5]


Class of assetDepreciation allowance as percentage of—Remarks

(i) actual cost in the case of ocean-going ships;

(ii) written down value in the case of any other asset


1[1.  General rate

2.  Special rate in respect of factory buildings (excluding offices, godowns, officers’ and employees’ quarters, roads,  bridges, culverts, wells and tube wells)

2[3.] Purely temporary erections such as  wooden structures

2[4.] In respect of any structure or work in or in relation to a building referred to in subsection (1A) of section 32,—




“Buildings” include roads, bridges, culverts, wells and tubewells.]

(a) where such structure is constructed or such work is done by way of  renovation or improvement to any  such building

The percentage specified against sub-item 3[1, 2 or 3] as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected;

(b) where the structure is constructed or the work is done by way of extension to any such building

The percentage specified against sub-item 4[1, 2 or 3] as would be appropriate if the structure or work constituted a separate building.

 1.  General rate


 2.  Rate for furniture and fittings used in hotels, restaurants and boarding houses; schools, colleges and other educational institutions; libraries; welfare centres; meeting halls; cinema houses; theatres and circuses; and for furniture and fittings let out on hire for use on the occasion of marriages and similar functions

III. MACHINERY AND PLANT (not being a ship)—

(i) General rate applicable to machinery and plant (not being a ship) for which no special rate has been prescribed under item (ii) hereinbelow

(ii) Special rates:


A. 6[***]

B. 7[***]

C.  (1) Cinematograph films—Machinery used in the production and exhibition of cinematograph films [N.E.S.A.]

(a) Recording equipment, reproducing equipment, developing machines, printing machines, editing machines, synchronisers and studio lights except bulbs

(b) Projecting equipment of film exhibiting concerns


 (2)  Cycles [N.E.S.A.]

(3) Data processing machines including computers [N.E.S.A.]

(4) Electrical machinery—Batteries; X-Ray and electro-therapeutic apparatus and accessories thereto [N.E.S.A.]

(5) Glass manufacturing concerns except direct fire glass melting furnaces—Recuperative and regenerative glass melting furnaces

(6) Juice boiling pans (karhais) [N.E.S.A.]

8[(6A) Machinery used in the manufacture of electronic goods or components]

9(7) Motor-cars, motor cycles, scooters and other mopeds [N.E.S.A.]

(8) Sugarcane crushers (indigenous kolhus and belans) [N.E.S.A.]


D. (1) Aeroplanes—Aircraft, aerial photographic apparatus [N.E.S.A.]

(2) Concrete pipes manufacture—Moulds [N.E.S.A.]

(3) Drum container manufacture—Dies [N.E.S.A.]

10(4) Earth-moving machinery employed in heavy construction works, such as dams, tunnels, canals, etc. [N.E.S.A.]

(5) Glass manufacturing concerns except direct fire glass melting furnaces—Moulds [N.E.S.A.]

(6) Moulds in iron foundries [N.E.S.A.]

(7) Mineral oil concerns—Field operations (above ground)—Portable boilers, drilling tools, well-head tanks, rigs, etc. [N.E.S.A.]

(8) Mines and quarries—Portable underground machinery and earth-moving machinery used in open cast mining [N.E.S.A.]

11[12[(9) 13Motor buses and motor lorries other than those used in a business of running them on hire [N.E.S.A.]]

14(9A) Motor tractors, harvesting combines [N.E.S.A.]]

(10) Patterns, dies and templates [N.E.S.A.]

15[(10A) Renewal energy devices, being—

(i) Flat plate solar collectors

(ii) Concentrating and pipe type solar collectors

(iii) Solar cookers

(iv) Solar water heaters and systems

(v) Air/gas/fluid heating systems

(vi) Solar crop driers and systems

(vii) Solar refrigeration, cold storages and air-conditioning systems

(viii) Solar steels and desalination systems

(ix) Solar power generating systems

(x) Solar pumps based on solar thermal and solar photovoltaic conversion

(xi) Solar photovoltaic modules and panels for water pumping and other applications

(xii) Wind mills and any specially designed devices which run on wind mills

(xiii) Any special devices including electric generators and pumps running on wind energy

(xiv) Biogas plant and biogas engines

(xv) Electrically operated vehicles including battery powered or fuel-cell powered vehicles

(xvi) Agricultural and municipal waste conversion devices producing energy

(xvii) Equipment for utilising ocean waste and thermal energy

(xviii) Machinery and plant used in the manufacture of any of the above sub-items]

16[(10B) (a) Air pollution control equipments, being—

(i) Electrostatic precipitation systems

(ii) Felt-filter systems

(iii) Dust collector systems

(iv) Scrubber—counter current/venturi/packed-bed/cyclonic scrubbers

(b) Water pollution control equipments being—

(i) Mechanical screen systems

(ii) Aerated detritus chambers (including air compressor)

(iii) Mechanically skim-med oil and grease removal systems

(iv) Chemical feed systems and flash mixing equipment

(v) Mechanical flocculators and mechanical reactors

(vi) Diffused air/ mechanically aerated activated sludge systems

(vii) Aerated lagoon systems

(viii) Bio-filters

(ix) Methane recovery anaerobic digester system

(x) Air floatation systems

(xi) Air/steam stripping systems

(xii) Urea hydrolysis systems

(xiii) Marine outfall systems

(xiv) Centrifuge for de-watering sludge

(xv) Rotating biological contractor or bio-disc

(c) Solid waste control equipments, being—

Caustic/lime/chrome/mineral/cryolite recovery system]


(11) Ropeway structures—Ropeways, ropes and trestle sheaves and connected parts [N.E.S.A.]

(12) Shoe and other leather goods factories—Wooden lasts used in the manufacture of shoes


E.   (1)  Aeroplanes — Aero-engines [N.E.S.A.]

18[(1A) Motor buses, motor lorries and motor taxis used in a business of running them on hire [N.E.S.A.]]

(2)  Rubber and plastic goods factories—Moulds [N.E.S.A.]40

F.   (1) Artificial silk manufacturing machinery—Wooden parts

(2) Cinematograph films—Bulbs of studio lights

19[(2A) Energy saving devices, being—

(a) Specialised boilers and furnaces:

   (i) Ignifluid/fluidized bed boilers

  (ii) Flameless furnaces

 (iii) Fluidized bed type heat treatment furnaces

 (iv) 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:

   (i) Automatic electrical load monitoring systems

  (ii) Digital heat loss meters

 (iii) Micro-processor based control systems

(c) Waste heat recovery equipments and cogeneration systems:

   (i) Economisers and feed water heaters

  (ii) Recuperators and air pre-heaters

 (iii) Back pressure turbines for cogeneration

 (iv) Heat pumps

  (v) Vapour absorption refrigeration systems

 (vi) Organic rankine cycle power systems

 (vii) Low inlet pressure small steam turbines

(d)  Power factor correcting devices :

Shunt capacitors and synchronous condenser systems]

(3) Flour mills—Rollers

(4) Gas cylinders including valves and regulators

(5) Glass manufacturing concerns—Direct fire glass melting furnaces

(6) Iron and steel industry—Rolling mill rolls

(7) Match factories—Wooden match frames

(8) 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 assets co-vered by 20sub-item (ii) B(9) above.

(9) Mines and quarries—

(a)  Tubs, winding ropes, haulage ropes and sand stowing pipes

(b)  Safety lamps

(10) Salt works—Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material

(11) Sugar works—Rollers


(iii) Extra depreciation allowance for approved hotels:

An extra allowance of depreciation of an amount equal to one-half of the normal allowance shall be allowed in the case of machinery and plant installed by an assessee, being an Indian company, in premises used by it as a hotel where such hotel is for the time being approved by the Central Government for the purposes of section 33 of the Act.

Explanation: For the purposes of this sub-item and sub-item (iv), “normal allowance” means the amount of depreciation allowance [other than the extra depreciation allowance under this sub-item or the extra shift depreciation allowance under sub-item (iv)] which is allowable under rule 5.

21(iv) Extra shift depreciation allowance:

An extra allowance up to a maximum of an amount equal to one-half of the normal allowance shall be allowed where a concern claims such allowance on account of double shift working and establishes that it has worked double shift. An extra allowance up to a maximum of an amount equal to the normal allowance, instead of one-half of the normal allowance, shall be allowed where a concern claims such allowance on account of triple shift working and establishes that it has worked triple shift.

The calculations of the extra allowance for double shift working and for triple shift working shall be made separately in the proportion which the number of days for which the concern worked double shift or triple shift, as the case may be, bears to the normal number of working days during the previous year.

For this purpose, the normal number of working days during the previous year shall be deemed to be—

 (a)  in the case of a seasonal factory or concern, the number of days on which the factory or concern actually worked during the previous year or 180 days, whichever is greater;

 (b)  in any other case, the number of days on which the factory or concern actually worked during the previous year or 240 days, whichever is greater.


For example, where a non-seasonal concern worked 270 days during the previous year out of which it worked triple shift on 135 days and double shift on another 90 days, the extra depreciation allowance for triple shift working will be 135/270, i.e., one-half, of the normal allowance, and that for double shift working 90/270, i.e., one-third, of one-half, of the normal allowance.

The extra shift allowance shall not be allowed in respect of any item of machinery or plant which has been specifically excepted by inscription of the letters “N.E.S.A.” (meaning “No Extra Shift Allowance”) against it in sub-item (ii) above and also in respect of the following items of machinery and plant to which the general rate of depreciation of 22[15] per cent applies—

 23[(1)  Accounting machines

(2)  Air-conditioning machinery including room air-conditioners

(3)  Building contractor’s machinery

(4)  Calculating machines

(5)  Electrical machinery—switchgear and instruments, transformers and other stationary plant and wiring and fittings of electric light and fan installations

(6)  Hydraulic works, pipelines and sluices

(7)  Locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns

(8)  Mineral oil concerns—field operations:

(a)  Boilers

(b)  Prime movers

(c)  Process plant

(d)  Storage tanks (above ground)

(e)  Pipelines (above ground)

(f)  Jetties and dry docks

 (9) Mineral oil concerns—field operations (distribution)—kerbside pumps, including underground tanks and fittings

(10) Mineral oil concerns—refineries:

(a)  Boilers

(b)  Prime movers

(c)  Process plant

(11) Mines and quarries:

(a) Surface and underground machinery (other than electrical machinery and portable underground machinery)

(b)  Head-gears

(c)  Rails

(d)  Boilers

(e)  Shafts and inclines

(f)  Tramways on the surface

(12) Neo-post franking machines

(13) Office machinery

(14) Overhead cables and wires

(15) Railway sidings

(16) Refrigeration plant containers, etc.

(other than racks)

(17) Ropeway structures:

(a)  Trestle and station steel work

(b)  Driving and tension gearing

(18) Salt works—Reservoirs, condensers, salt pans, delivery channels and piers

if constructed of masonry, concrete, cement, asphalt or similar materials; barges and floating plant; piers, quays and jetties; and pipelines for conveying brine if constructed of masonry, concrete, cement, asphalt or similar materials

(19)  Surgical instruments

(20) Tramways electric and tramways run by internal combustion engines—permanent way: cars—car trucks, car bodies, electrical equipment and motors; tram cars including engines and gears

(21) Typewriters

(22) Weighing machines

(23) Wireless apparatus and gear, wireless appliances and accessories]


24[1. Ocean-going ships—

   (i)  Fishing vessels with wooden hull


25[(ii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes

7]To be calculated on the actual cost]

(iii) Other ships


 2. Vessels ordinarily operating on inland waters—

 (i) *Speed boats


(ii) Other vessels


* “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.


[See rule 5]


Age at date of purchaseExpectation of life
Over yearsUnder yearsYears
Over 24 yearsAs determined by the Board on the facts of each case


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