Taxable value is to be calculated by charging depreciation at the following rates :
Electronic items 50% p.a. on WDV basis
Motor car or other conveyance 20% p.a. on WDV basis
Any other item 10% p.a. on actual cost basis
Taxable value = [ Actual to the Employer – Normal wear and tear of the Asset – Any amount paid by employee or recovered from him ]
Electronic item here means data storage and handling devices like computer, digital diaries and printers. They do not include household appliances like washing machines, microwaves, ovens, mixers, etc.
Depreciation is to be charged on year to year basis i.e., period of 12 months to be counted from date of acquisition.