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Block of Assets on the basis of Class of Assets and Rates of Depreciation - for Computing Profits and Gains of Business or Professions

1.   "Buildings"  - Block of Assets with Rate of Depreciation

 

Block 1

Buildings which are used mainly for residential purposes except hotels and  boarding houses

5%

Block 2

Buildings other than those used mainly for residential purposes and not  covered by sub-items (1) above and (3) below

10%

Block 3

(i)  Buildings 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) 

 

(ii)  Purely temporary erections such as wooden structures

40%

 

2.   "Furniture and Fittings"  - Block of Assets with Rate of Depreciation

 

Block 1

Furniture and fittings including electrical fitting

10%

 

3.   "Machinery and Plant"  - Block of Assets with Rate of Depreciation

 

Block 1

Motor cars, other than those used in a business of running them on hire. (Also  see item No. (iv) in block 3 for rate of depreciation of motor car acquired on  or after 23.8.2019 but before 1.4.2020 and is put to use before 1.4.2020) 

 

Machinery and plant other than those covered by block Nos. 2 to 8 below.

15%

Block 2

Ships: 

(i)            Ocean-going ships including dredgers, tugs, barges, survey launches and  other similar ships used mainly for dredging purposes and fishing  vessels with wooden hull. 

 

(ii)           Vessels ordinarily operating on inland waters, not covered by sub-item  (c) below. 

 

(iii)          Vessels ordinarily operating on inland waters being speed boats. 

 

20%

Block 3

(i)            Motor buses, motor lorries and motor taxis used in a business of running  them on hire. (Also see Block 5 for rate of depreciation of Motor buses,  motor lorries, etc. acquired on or after 23.8.2019 but before 1.4.2020 and  is put to use before 1.4.2020) 

 

(ii)           Moulds used in rubber and plastic goods factories. 

 

(iii)          Machinery and plant, used in semi-conductor industry covering all  integrated circuits (ICs) (excluding hybrid integrated circuits) ranging  from small scale integration (SSI) to large scale integration/very large  scale integration (LSI/VLSI) as also discrete semi-conductor devices  such as diodes, transistors, thyristors, trials, etc.) other than those  entitled to 80% rate of depreciation, given in block 7 below. 

 

(iv)          Motor cars, other than those used in a business of running them on hire,  acquired on or after 23.8.2019 but before 1.4.2020 and is put to use  before 1.4.2020. 

 

 

30%

Block 4

(i)            Aeroplanes — Aeroengines. 

 

(ii)           Commercial vehicle which is acquired by the assessee on or after  1.10.1998, but before 1.4.1999 and is put to use for any period before  1.4.1999 for the purposes of business or profession. 

 

(iii)          Specified life saving medical equipment 

 

(iv)          Containers made of glass or plastic used as re-fills. 

 

(v)           New commercial vehicle which is acquired on or after 1.1.2009 but  before 1.10.2009 and is put to use before 1.10.2009 for the purposes of  business or profession

 

(vi)          Computers including computer software 

 

(vii)        Books, (other than books, (a) being annual publications, or (b) books  owned by assesses carrying on business in running lending libraries). 

 

(viii)       Gas cylinders including valves and regulators, Direct fire glass melting  furnaces used in Glass manufacturing concerns, Plant used in field  operations (above ground) distribution, and Plant used in field  operations (below ground), but not including kerbside pumps including  underground tanks and fittings used in field operations (distribution)  by mineral oil concerns. 

 

(ix)          Rollers used in Flour mills, Rolling mill rolls used in Iron and steel  industry, Rollers used in Sugar works, Energy saving devices,  Renewal energy devices and 

 

(x)           Wind mills and any specially designed devices which run on wind  mills installed on or after 1-4-2014 

 

(xi)     Any special devices including electric generators and pumps running  on wind energy installed on or after 1-4-2014   

 

(xii)         Machinery and plant, acquired and installed in a water supply project  or a water treatment system and which is put to use for the purpose of  business of providing infrastructure facility under section 80-IA(4)(i). 

 

(xiii)       Wooden parts used in artificial silk manufacturing machinery. 

 

(xiv)       Cinematograph films — bulbs of studio lights. 

 

(xv)        Match factories — Wooden match frames. 

 

(xvi)       Tubs, winding ropes, haulage ropes and sand stowing pipes, and Safety  lamps used in Mines and quarries. 

 

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

 

(xviii)     Books owned by assessees carrying on a profession, being annual  publications. 

 

(xix)       Books owned by assessees carrying on business in running lending  libraries. 

 

(xx)        Air pollution control equipment, Water pollution control equipment,  Solid waste control equipment, Solid waste recycling and resource  recovery systems. 

 

 

40%

Block 5

Motor buses, motor lorries and motor taxis used in a business of running them  on hire, acquired on or after 23.8.2019 but before 1.4.2020 and is put to  use before 1.4.2020.

45%

 

4.   "Intangible Assets"  - Block of Assets with Rate of Depreciation

 

Block 1

Know-how, Patents, Copyrights, Trademarks, Licences, Franchises or any other Business or Commercial Rights of similar nature.

25%

 

 

Note :

 

1.            "Buildings" include roads, bridges, culverts, wells and tube-wells. 

 

2.            Water treatment system includes system for desalinisation, demineralisation and purification of water. 

 

3.            40% depreciation is allowable on temporary wooden structure and tin shed as these are purely  temporary erection. 

 

4.            "Electrical fittings" include electrical wiring, switches, sockets, other fittings and fans, etc.

 

5.            "Computer software" means any computer programme recorded on any disc, tape, perforated media or  other information storage device. 

 

6.            Machinery and plant includes pipes needed for delivery from the source of supply of raw water to the  plant and from the plant to the storage facility. 

 

7.            Plant shall not include buildings, furniture and fittings and as such the building, electrical fittings, etc.  cannot be treated as plant.

 

 

 

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