Revised Procedure for online submission of TDS/TCS statement

F. No. DGIT(S)-ADG(S)-2/e-filing notification/106/2016
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)

                                                          Notification No. 11/2016

                                                  New Delhi, Dated: 22nd June, 2016

Procedure for online submission of statement of deduction of tax under sub-section (3) of section 200 and statement of collection of tax under proviso to sub-section (3) of section 206C of the Income-tax Act, 1961 read with rule 31A(5) and rule 31AA(5) of the Income-tax Rules, 1962 respectively

The provisions relating to the statement of deduction of tax under sub-section (3) of section 200 and the statement of collection of tax under proviso to sub-section (3) of section 206C of the Income-tax Act, 1961 (the Act) are prescribed under Rule 31A and Rule 31AA of the Income-tax Rules, 1962 (the Rules) respectively. As per sub-rule (5) of rule 31A and sub-rule (5) of rule 31AA of the Rules, the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day to day administration in relation to furnishing and verification of the statements in the manner so specified.

2. In exercise of power conferred by sub-rule (5) of rule 31A and sub-rule (5) of rule 31AA of the Rules, the Principal Director General of Income-tax (Systems) hereby lays down the following procedures of registration in the e-filing portal, the manner of the preparation of the statements and submission of the statements as follows:

3. The deductors/collectors will have the option of online filing of e-TDS-TCS returns through e-filing portal or submission at TIN Facilitation Centres. Procedure for filing e‑TDS/TCS statement online through e-filing portal is as under:

a. Registration: The deductor/collector should hold valid TAN and is required to be registered in the e-filing website (https://incometaxindiaefilinq.gov.in/) as “Tax Deductor & Collector” to file the “e-TDS/e-TCS Return”.

b. Preparation: The Return Preparation Utility (RPU) to prepare the TDS/TCS Statement and File Validation Utility(FVU) to validate the Statements can be downloaded from the tin-nsdl website (https://www.tin-nsdl.com/). The statement is required to be uploaded as a zip file and submitted using either Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). For DSC mode, the
signature for the zip file can be generated using the DSC Management Utility (available under Downloads in the e-Filing website http://incometaxindiaefiling.gov.in/). Alternatively, deductor/collector can e-Verify using EVC.

c. Submission: The deductor/collector is required to login to the e-filing website using TAN and go to TDS -> Upload TDS. The deductor/collector is required to upload the “Zip” file along with the signature file (generated as explained in para (b) above) or EVC.

4. EVC can be generated using one of the following modes:

a. Net Banking – Principal contact person’s net banking login (linked to the registered PAN) can be used to generate the EVC for the TAN of the deductor/collector.

b. Aadhar OTP – The principal contact person’s PAN can be linked with AADHAAR to
use this option.

c. Bank Account Number – The principal contact person can use his pre validated bank account details to avail this option.

d. Demat Account Number – The principal contact person can use his pre validated demat account details to avail this option.

This pre generated EVC can be used to e-Verify the TDS return.

5. Once uploaded, the status of the statement shall be shown as “Uploaded”. The uploaded file shall be processed and validated. Upon validation, the status shall be shown as either “Accepted” or “Rejected which will reflect within 24 hours from the time of upload. The status of uploaded file is visible at TDS -> View Filed TDS. In case the submitted file is “Rejected”, the rejection reason shall be displayed.

Gopal Mukherjre

Pr. DGIT (Systems). CBDT

Name Reservation & Company Incorporation--FAQ

1. What is Central Registration Centre (CRC)?

The Central Registration Centre (CRC) is an initiative of Ministry of Corporate Affairs (MCA) in Government Process Re-engineering (GPR) with the specific objective of providing speedy incorporation related services in line with global best practices.

2. What services are offered by the CRC presently?
CRC is presently tasked to process applications for name availability (INC-1) and forms related to new companies incorporations (INC-2/INC-7/INC-29/INC-22 and DIR-12.

3. How do I apply for a name for a company?
You can use the services of check name availability for first-hand information on whether the proposed name is available and then apply for it in form INC-1 with six alternative names with deferent prefix word or INC-29 (composite Incorporation Form).

4. What do I do if the name applied for is put under resubmission due to the following reasons :

a. SIMILAR NAME ALREADY EXISTS :

You are requested to read the mail carefully and follow the query. Before resubmitting please recheck the name from name availability option available at MCA website www.mca.gov.in under ‘services’ tab and the Companies Incorporation rules 2014 with six alternative names .

b. TRADE MARK EXISTS :

You are requested to read the mail carefully and follow the query. Before resubmitting please recheck the details of Trade Marks are available at MCA website www.mca.gov.in

5. How Can I apply for names which includes words like Insurance, Bank, Stock Exchange, Venture Capital, Asset Management, Nidhi, Mutual Fund, Finance, Chits, Investment, Leasing, Hire purchase etc. or any combination thereof?

Please select ‘yes’ in field 14a of INC-1 (Whether the proposed name includes the words such as Insurance, Bank, Stock exchange, Venture Capital, Asset Management, Nidhi, or Mutual Fund etc.) if name has finance or any other indication of finance activity.

In case of INC-29 (Integrated Incorporation Form), if proposed name includes combination of above words, please select ‘yes’ in field 5 (b) (iv).

In respect of section 8 companies, declaration is required to be attached confirming that after Incorporation, all the mandated requirements of the respective Act/regulator, such as IRDA, RBI, SEBI, MCA etc will be complied with.

The above declarations are required to be given in compliance of rule 8 (2) (b) (iii) and (xiii) of the Companies (Incorporation) Rules 2014(as amended).

6. How can I apply for a name if the name of a Trade Mark is included in its proposed name?

Prescribed particulars in E-form INC-1 are required to be filled in field 11 & 12 duly supported by NOC from the Trade Mark owner.

In case of INC-29, Trade Mark details are required to be filled up in field 5(c) of duly supported by NOC from trade mark owner.

The details of Trade Marks are available at MCA Website www.mca.gov.in under Trade Mark link.

7. How can I apply for a name if combination of the proposed name contains only one word of difference with similar prefix of an existing company?
NOC by way of Board resolution from existing company is required to be attached with e-form.

8. How can I apply for a name if prefix of the proposed name is same to the existing company and activity is not mentioned?

This type of name may be allowed when accompanied with NOC by way of board resolution from the existing companies whose name is same.

9. Can I apply for a name which has the word ‘company’ though the proposed company does not fall under the category of a producer company?

Yes. However, an off-line application has to be made to the Joint Secretary, Ministry of Corporate Affairs, Shastri Bhawan, Dr Rajendra Prasad Road, New Delhi-110 001. MCA will process the application on case to case basis for necessary approval. On approval of the application a pre-formatted INC-1 or INC-29 (enabling therein the word company in its name) will be forwarded to the applicant through the jurisdictional RoC for filing purposes.

10. Can I apply for a name in INC-1 to incorporate a Section 8 company with the words ‘micro-finance’ in its name?
Yes for this type of name, you can apply along with declaration as per rule 12 of the Companies (Incorporation) Rule, 2014 if, license is issued under section 8. However, Finance activity is under regulatory control of RBI. Hence at the time of filing incorporation documents promoters/director of proposed company are required to give undertaking as per rule 12 of the Companies (Incorporation) Rules, 2014.

11. What are the steps for incorporating a Section 8 Company?
(i) To incorporate a Section 8 company the promoter/applicant has to first submit an application in INC-1 for reserving a name for a section 8 company (Select radio button of “section 8 Company”).

(ii) On the approval of this application for name, he has to file INC-12 with Jurisdictional RoC for obtaining a License. While making an application for License in INC-12, the approved SRN of INC-1 is a pre-requisite. Please refer the field 3 (* Indicate Registrar of companies (ROC) reference number for name approval (Service Request Number (SRN) of Form INC-1) of INC-12.

(iii) On obtaining the License, he may file INC-7 for incorporating the company. While filling INC-7 the relevant approved SRN of INC-1 and License Number obtained through INC-12 has to be filled in relevant fields.

Note: While INC-1/INC-2/INC-7 along with relevant linked forms viz. INC-22 and DIR-12 and INC-29 are processed by the CRC, application for License (INC-12) is processed by the jurisdictional RoC.

12. How many times ‘Resubmission/Pending for User Clarification (PUCL)’ is allowed in INC-1/INC-2/INC-7 and INC-29?

Resubmission/PUCL is allowed only ‘once’ (in aggregate) in respect of INC-1/INC-2 and INC-7. However, Resubmission/PUCL is allowed ‘thrice’ (in aggregate) in respect of INC-29.

Income Tax Rates / Slab / Chart for A.Y. 2016-17 & 2017-18

1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person

Assessment Year 2016-17

Taxable income	Tax Rate
Up to Rs. 2,50,000	Nil
Rs. 2,50,000 to Rs. 5,00,000	10%
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Less: Rebate under Section 87A [see Note]

Add: Surcharge and Education Cess [see Note]

Assessment Year 2017-18

Taxable income	Tax Rate
Up to Rs. 2,50,000	Nil
Rs. 2,50,000 to Rs. 5,00,000	10%
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Less: Rebate under Section 87A [see Note]

Add: Surcharge and Education Cess [see Note]

2. In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)

Assessment Year 2016-17

Taxable income	Tax Rate
Up to Rs. 3,00,000	Nil
Rs. 3,00,000 – Rs. 5,00,000	10%
Rs. 5,00,000 – Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Less: Rebate under Section 87A [see Note]

Add: Surcharge and Education Cess [see Note]

Assessment Year 2017-18

Taxable income	Tax Rate
Up to Rs. 3,00,000	Nil
Rs. 3,00,000 – Rs. 5,00,000	10%
Rs. 5,00,000 – Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Less: Rebate under Section 87A [see Note]

Add: Surcharge and Education Cess [see Note]

3. In case of a resident super senior citizen (who is 80 years or more at any time during the previous year)

Assessment Year 2016-17

Taxable income	Tax Rate
Up to Rs. 5,00,000	Nil
Rs. 5,00,000 – Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Add: Surcharge and Education Cess [see Note]

Assessment Year 2017-18

Taxable income	Tax Rate
Up to Rs. 5,00,000	Nil
Rs. 5,00,000 – Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Add: Surcharge and Education Cess [see Note]

Note:

Assessment Year 2016-17

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

 d) Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 2,000, whichever is less.

Assessment Year 2017-18

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 15% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

 d) Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 5,000, whichever is less.

4. Partnership Firm

For the Assessment Year 2016-17 and 2017-18, a partnership firm (including LLP) is taxable at 30%.

Add:

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

5. Local Authority

For the Assessment Year 2016-17 and 2017-18, a local authority is taxable at 30%.

Add:

 d) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 e) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 f) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

6. Domestic Company

For the Assessment Year 2016-17 and 2017-18, a domestic company is taxable at 30%. However, for Assessment year 2017-18, tax rate is 29% if turnover or gross receipt of the company does not exceed Rs. 5 crore.

Add:

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

  (i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

  (ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

7. Foreign Company

Assessment Year 2016-17 and Assessment Year 2017-18

Nature of Income	Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government	50%
Any other income	40%

 Add:

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

 (i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

 (ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

8. Co-operative Society

Assessment Year 2016-17 and Assessment Year 2017-18

Taxable income	Tax Rate
Up to Rs. 10,000	10%
Rs. 10,000 to Rs. 20,000	20%
Above Rs. 20,000	30%

Add:

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education 

Rates of Depreciation as Per Income Tax Act,1961

Rates of depreciation

(for income-tax)

AS APPLICABLE FROM THE ASSESSMENT YEAR 2003-04 ONWARDS

Block of assets	Depreciation allowance as percentage of written down value
	AYs 2003-04 to 2005-06	AY 2006-07 onwards
1	2	3
PART A
TANGIBLE ASSETS
I. BUILDING [See Notes 1 to 4 below the Table]
(1) Buildings which are used mainly for residential purposes except hotels and boarding houses	5	5
(2)  Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below	10	10
(3)  Buildings acquired on or after the 1st day of September, 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 infra- structure facilities under clause (i) of sub-section (4) of section 80-IA	100	100
(4)  Purely temporary erections such as wooden structures	100	100
II. FURNITURE AND FITTINGS
Furniture and fittings including electrical fittings [See Note 5 below the Table]	15	10
III. MACHINERY AND PLANT
(1)  Machinery and plant other than those covered by sub-items (2), (3) and (8) below :	25c.	15c.
a.(2) Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990	20	15
(3)  (i) Aeroplanes – Aeroengines	40	40
b.(ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire	40	30
(iii) Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table]	40	40
(iv)  New commercial vehicle which is acquired on or after the 1st day of October, 1998, but before the 1st day of April, 1999 in replacement of condemned vehicle of over 15 years of age and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table]	60	60
(v)  New commercial vehicle which is acquired on or after the 1st day of April, 1999 but before the 1st day of April, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the 1st day of April, 2000 for the purposes of business or profession in accordance with the second proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the Table]	60	60
(vi)  New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession [See Note 6 below the Table]	50	50
(via) New commercial vehicle which is acquired on or after the 1st day of January, 2009 but before the 1st day of October, 2009 and is put to use before the 1st day of October, 2009 for the purposes of business or profession [See paragraph 6 of the Notes below this Table]	—	50
d.(vii) Moulds used in rubber and plastic goods factories	40	30
(viii)  Air pollution control equipment, being—
(a)  Electrostatic precipitation systems
(b)  Felt-filter systems
(c)  Dust collector systems	100	100
(d)  Scrubber-counter current/venturi/packed bed/cyclonic scrubbers
(e)  Ash handling system and evacuation system
(ix)  Water pollution control equipment, being—
(a)  Mechanical screen systems
(b)  Aerated detritus chambers (including air compressor)
(c)  Mechanically skimmed oil and grease removal systems
(d)  Chemical feed systems and flash mixing equipment
(e)  Mechanical flocculators and mechanical reactors
(f)  Diffused air/mechanically aerated activated sludge systems
(g)  Aerated lagoon systems	100	100
(h)  Biofilters
(i)  Methane-recovery anaerobic digester systems
(j)  Air floatation systems
(k)  Air/steam stripping systems
(l)  Urea Hydrolysis systems
(m)  Marine outfall systems
(n)  Centrifuge for dewatering sludge
(o)  Rotating biological contractor or bio-disc
(p)  Ion exchange resin column
(q)  Activated carbon column
(x) (a) Solidwaste control equipments being – caustic/lime/chrome/mineral/cryolite recovery systems	100	100
(b)  Solidwaste recycling and resource recovery systems
(xi)  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, triacs, etc., other than those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below	40	30
(xia) Life saving medical equipment, being—
(a)  D.C. Defibrillators for internal use and pace makers
(b)  Haemodialysors
(c)  Heart lung machine
(d)  Cobalt Therapy Unit
(e)  Colour Doppler
(f)  SPECT Gamma Camera
(g)  Vascular Angiography System including Digital subtraction Angiography
(h)  Ventilator used with anaesthesia apparatus
(i)  Magnetic Resonance Imaging System
(j)  Surgical Laser	40†	40
(k)  Ventilators other than those used with anaesthesia
(l)  Gamma knife
(m)  Bone Marrow Transplant Equipment including silastic long standing intravenous catheters for chemotherapy
(n)  Fibreoptic endoscopes including Paediatric resectoscope/audit resectoscope, Peritoneoscopes, Arthoscope, Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, Fibreoptic Flexible Laryngo Bronchoscope, Video Laryngo Bronchoscope and Video Oesophago Gastroscope, Stroboscope, Fibreoptic Flexible Oesophago Gastroscope
(o)  Laparoscope (single incision)
(4)  Containers made of glass or plastic used as re-fills	50	50
(5)  Computers including computer software [See note 7 below the Table]	60	60
(6)  Machinery and plant, used in weaving, processing and garment sector of textile industry, which is purchased under TUFS on or after the 1st day of April, 2001 but before the 1st day of April, 2004 and is put to use before the 1st day of April, 2004 [See Note 8 below the Table]	50	50
(7)  Machinery and plant, acquired and installed on or after the 1st day of September, 2002 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 clause (i) of sub-section (4) of section 80-IA [See Notes 4 and 9 below the Table]	100	100
(8)  (i) Wooden parts used in artificial silk manufacturing machinerye.	100	100
(ii)  Cinematograph films – bulbs of studio lights	100	100
(iii)  Match factories – Wooden match frames	100	100
(iv)  Mines and quarries :
(a)  Tubs, winding ropes, haulage ropes and sand stowing pipes	100	100
(b)  Safety lamps
(v)  Salt works – Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material	100	100
(vi)  Flour mills – Rollers	80	80
(vii)  Iron and steel industry – Rolling mill rolls	80	80
(viii)  Sugar works – Rollers	80	80
(ix)  Energy saving devices, being—
A. Specialised boilers and furnaces:
(a)  Ignifluid/fluidized bed boilers
(b)  Flameless furnaces and continuous pusher type furnaces
(c)  Fluidized bed type heat treatment furnaces	80	80
(d)  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:
(a)  Automatic electrical load monitoring systems
(b)  Digital heat loss meters
(c)  Micro-processor based control systems
(d)  Infra-red thermography	80	80
(e)  Meters for measuring heat losses, furnace oil flow, steam flow, electric energy and power factor meters
(f)  Maximum demand indicator and clamp on power meters
(g)  Exhaust gases analyser
(h)  Fuel oil pump test bench
C. Waste heat recovery equipment:
(a)  Economisers and feed water heaters
(b)  Recuperators and air pre-heaters	80	80
(c)  Heat pumps
(d)  Thermal energy wheel for high and low temperature waste heat recovery
D. Co-generation systems:
(a)  Back pressure pass out, controlled extraction, extraction-cum-condensing turbines for co-generation along with pressure boilers	80	80
(b)  Vapour absorption refrigeration systems
(c)  Organic rankine cycle power systems
(d)  Low inlet pressure small steam turbines
E.Electrical equipment:
(a)  Shunt capacitors and synchronous condenser systems
(b)  Automatic power cut off devices (relays) mounted on individual motors
(c)  Automatic voltage controller
(d)  Power factor controller for AC motors
(e)  Solid state devices for controlling motor speeds
(f)  Thermally energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one kilogram of water)
(g)  Series compensation equipment
(h)  Flexible AC Transmission (FACT) devices – Thyristor controlled series compensation equipment	80	80
(i)  Time of Day (ToD) energy meters
(j)  Equipment to establish transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient region
(k)  Remote terminal units/intelligent electronic devices, computer hardware/software, router/bridges, other required equipment and associated communication systems for supervisory control and data acquisition systems, energy management systems and distribution management systems for power transmission systems
(l)  Special energy meters for Availability Based Tariff (ABT)
F. Burners:
(a)  0 to 10 per cent excess air burners
(b)  Emulsion burners	80	80
(c)  Burners using air with high pre-heat temperature (above 300°C)
G. Other equipment:
(a)  Wet air oxidation equipment for recovery of chemicals and heat
(b)  Mechanical vapour recompressors
(c)  Thin film evaporators
(d)  Automatic micro-processor based load demand controllers	80	80
(e)  Coal based producer gas plants
(f)  Fluid drives and fluid couplings
(g)  Turbo charges/super-charges
(h)  Sealed radiation sources for radiation processing plants
f.(x) Gas cylinders including valves and regulators	80	60
(xi)  Glass manufacturing concerns – Direct fire glass melting furnaces	80	60
g.(xii) 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 kerbside pumps including underground tanks and fittings used in field operations (distribution) by mineral oil concerns	80	60
(xiii)  Renewal energy devices being—
(a)  Flat plate solar collectors
(b)  Concentrating and pipe type solar collectors
(c)  Solar cookers
(d)  Solar water heaters and systems
(e)  Air/gas/fluid heating systems
(f)  Solar crop driers and systems
(g)  Solar refrigeration, cold storages and air-conditioning systems
(h)  Solar steels and desalination systems
(i)  Solar power generating systems
(j)  Solar pumps based on solar-thermal and solar-photovoltaic conversion
(k)  Solar-photovoltaic modules and panels for water pumping and other applications	80	80
(l)  Windmills and any specially designed devices which run on wind-mills installed on or before March 31, 2012
(m)  Any special devices including electric generators and pumps running on wind energy installed on or before March 31, 2012
(n)  Biogas plant and biogas engines
(o)  Electrically operated vehicles including battery powered or fuel-cell powered vehicles
(p)  Agricultural and municipal waste conversion devices producing energy
(q)  Equipment for utilising ocean waste and thermal energy
(r)  Machinery and plant used in the manufacture of any of the above sub-items
(9)  (i) Books owned by assessees carrying on a profession—
(a)  Books, being annual publications	100	100
(b)  Books, other than those covered by entry (a) above	60	60
(ii)  Books owned by assessees carrying on business in running lending libraries	100	100
IV. SHIPS
(1)  Ocean-going ships including dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with wooden hull	25	20
(2)  Vessels ordinarily operating on inland waters, not covered by sub-item (3) below	25	20
(3)  Vessels ordinarily operating on inland waters being speed boats [SeeNote 10 below the Table]	25	20
PART B
INTANGIBLE ASSETS
Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature	25	25

 Notes –

 a.  Jeeps are classifiable as motor cars — Crompton Engg. Co. (Madras) Ltd. v. CIT[1992] 193 ITR 483 (Mad.)/CAIT v. Good Hope Enterprises [1992] 197 ITR 236 (Ker.).

 b.  Trucks primarily used for assessee’s own business and occasionally let out on hire will not fall under this entry unless assessee carries on a business of running them on hire—CIT v. Manjeet Stone Co. [1991] 190 ITR 183 (Raj.); Vehicles plying between fixed points for carriage of passengers fall under this entry—ITO v. Sarojini Transports (P.) Ltd. [1986] 17 ITD 1014 (Mad.); Mobile crane mounted on a lorry falls under this entry—Gujco Carriers v. CIT [2002] 122 Taxman 206 (Guj.); Rigs and Compressors mounted on a lorry do not fall under this item—CIT v. Popular Borewell Service [1992] 194 ITR 12 (Mad.); Motor vans are akin to motor lorries or motor buses—Circular No. 609, dated 29-7-1991/CIT v. Kodak Ltd. [1990] 181 ITR 275 (Bom.); Ambulance van falls under this entry—CIT v. Dr. K.R. Jayachandran [1995] 212 ITR 637 (Ker.); Air-conditioned vehicles fall under this entry—CIT v. Urmila Goel [1986] 52 CTR (Delhi) 276.

 c.  40 per cent if conditions of rule 5(2) are satisfied.

 d.  Company manufacturing insulated wires and cables is not covered under this entry—CIT v. Falcon Wires (P.) Ltd. [1980] 123 ITR 427 (Mad.).

 e.  Machinery used for dyeing, bleaching and printing of cloth manufactured by some other person will not fall under this item—CIT v. Jaypee Dyeing House [1999] 239 ITR 418 (Bom.).

† Applicable from the assessment year 2004-05.

 f.  Mere fact that assessee sold some cylinders during the previous year will not convert the cylinders into stock-in-trade. The cylinders must be capable of containing gas, and there is no requirement that the cylinders must be filled with gas—Chawla Architects & Consultants (P.) Ltd. v. Asstt. CIT [1995] 54 ITD 330 (Bom.).

 g.  Petroleum company distributing gas for cooking purpose is a ‘mineral oil concern’—CIT v. Burmah Shell Oil Storage & Distribution Co. of India Ltd. [1978] 115 ITR 891 (Cal.); Vegetable oil is not a ‘mineral oil’—CIT v. Distillers Trading Corporation Ltd. [1982] 137 ITR 894 (Delhi).

Other Notes:

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

2. A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential purposes is not less than sixty-six and two-third per cent of its total built-up floor area and shall include any such building in the factory premises.

3. In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in Explanation 1 of clause (ii) of sub-section (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected. Where the structure is constructed or the work is done by way of extension of any such building, the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

4. Water treatment system includes system for desalination, demineralisation and purification of water.

5. “Electrical fittings” include electrical wiring, switches, sockets, other fittings and fans, etc.

6. “Commercial vehicle” means “heavy goods vehicle”, “heavy passenger motor vehicle”, “light motor vehicle”, “medium goods vehicle” and “medium passenger motor vehicle” but does not include “maxi-cab”, “motor-cab”, “tractor” and “road-roller”. The expressions “heavy goods vehicle”, “heavy passenger motor vehicle”, “light motor vehicle”, “medium goods vehicle”, “medium passenger motor vehicle”, “maxi-cab”, “motor-cab”, “tractor” and “road-roller” shall have the meanings respectively as assigned to them in section 2 of the Motor Vehicles Act, 1988 (59 of 1988).

7. “Computer software” means any computer programme recorded on any disc, tape, perforated media or other information storage device.

8. “TUFS” means Technology Upgradation Fund Scheme announced by the Government of India in the form of a Resolution of the Ministry of Textiles vide No. 28/1/99-CTI of 31-3-1999.

9. 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.

10. “Speed boat” means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometers 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.

11. Where an asset is put to use for less than 180 days in a previous year in which it is purchased, depreciation thereon shall be allowed at 50% of the depreciation allowable in respect of the block of asset comprising such asset.

12. Plant has been held to include:

• movable partitions [Jarrold vs. John Good & Sons Ltd., 40 TC 681 (CA)]
• sanitary & pipeline fitting [CIT vs. Taj Mahal Hotel, 82 ITR 44 (SC)]
• ceiling and pedestal fans [CIT vs. Jagadees Chandran & Co., 75 ITR 697 (Mad.); Sundaram Motors Pvt. Ltd. vs. CIT, 71 ITR 587 (Mad.); CIT vs. Tarun Commercial Ltd., 151 ITR 75 (Guj)].
• wells [CIT vs. Warner Hindustan Ltd., 117 ITR 15 (AP)].
• hospital [CIT vs. Dr. B. Venkata Rao 111 Taxman 635 (SC)]. However, w.e.f. A.Y. 2004-05, it shall not include buildings, furniture and fittings.

13. Depreciation on assets acquired on hire purchase basis should be allowed to the hirer where the terms of the agreement provide that the equipment shall eventually become the property of the hirer or confer on the hirer an option to purchase the equipment [Circular No. 9 (R. Dis. No. 27(4) – IT/43), dated 23-3-1943].

14. Depreciation in respect of motor car manufactured outside India acquired on or after 28-2-1975 or before 1-4-2001 shall be allowed.

15. The claim of depreciation is mandatory w.e.f. A. Y. 2002-03 overriding Supreme Court’s decision in CIT vs. Mahendra Mills 109 Taxman 225 which held that the depreciation claim is optional.

16. Total depreciation allowable in the year of succession/ amalgamation/demerger, to predecessor/amalgamating/ demerged co. and successor/amalgamated/resulting co. is to be restricted to depreciation allowable as if succession/ amalgamation/demerger had not taken place, and such depreciation is to be apportioned on the basis of number of days usage by each of them.

17. Depreciation is allowable even on jointly owned assets.

18. Additional Depreciation @ 20% of actual cost of new machinery or plant (other than ships and aircrafts) acquired and installed after 31st March, 2005 by an assessee engaged in the business of manufacture or production of an article or thing shall be allowed on satisfying certain conditions.

19. No amortisation benefits u/ss. 35A and 35AB can be claimed in respect of intangible assets.

20. In respect of depreciable assets employed in power projects, depreciation may be computed under the Straight Line Method on individual assets [Rule 5(1A)] — [Appendix IA]. Alternatively, the undertaking, may at its option, also claim depreciation at the normal rates (Rule 5(1) — Appendix I), subject to the option being exercised prior to the due date of filing the return of income. In the event of sale or disposal of such assets, if the sale consideration.

– is less than WDV of such assets– Balance (i.e., WDV – sale consideration) can be claimed as depreciation, provided that such a deficiency is written off in the books.

– is in excess of the WDV — Excess (to the extent of the difference between actual cost and WDV will be taxable as Business profit and the balance as Capital Gains)

Depreciation rates for power generating units

(applicable from the assessment year 1998-99)

Class of assets	Depreciation allowance as percentage of actual cost
(a)  Plant and Machinery in generating stations including plant foundations :—
(i)  Hydro-electric	3.4
(ii)  Steam electric NHRS & Waste heat recovery Boilers/plants	7.84
(iii)  Diesel electric and Gas plant	8.24
(b)  Cooling towers and circulating water systems	7.84
(c)  Hydraulic works forming part of Hydro-electric system including :—
(i)  Dams, spillways weirs, canals, reinforced concrete flumes and syphons	1.95
(ii)  Reinforced concrete pipelines and surge tanks steel pipelines, sluice gates, steel surge (tanks), hydraulic control valves and other hydraulic works.	3.4
(d)  Building and civil engineering works of permanent character, not mentioned above
(i)  Office & showrooms	3.02
(ii)  Containing Thermo-electric generating plant	7.84
(iii)  Containing Hydro-electric generating plant	3.4
(iv)  Temporary erection such as wooden structures	33.4
(v)  Roads other than Kutcha roads	3.02
(vi)  Others	3.02
(e)  Transformers, transformer (Kiosk) sub-station equipment & other fixed apparatus (including plant foundations)
(i)  Transformers (including foundations) having a rating of 100 kilo volt amperes and over	7.81
(ii)  Others	7.84
(f)  Switchgear including cable connections	7.84
(g)  Lightning arrestor :
(i)  Station type	7.84
(ii)  Pole type	12.77
(iii)  Synchronous condenser	5.27
(h)  Batteries	33.4
(i)  Underground cable including joint boxes and disconnectioned boxes	5.27
(ii)  Cable duct system	3.02
(i)  Overhead lines including supports :
(i)  Lines on fabricated steel operating at nominal voltages higher than 66 kilo volts	5.27
(ii)  Lines on steel supports operating at nominal voltages higher than 13.2 kilo volts but not exceeding 66 kilo volts	7.84
(iii)  Lines on steel or reinforced concrete supports	7.84
(iv)  Lines on treated wood supports	7.84
(j)  Meters	12.77
(k)  Self-propelled vehicles	33.40
(l)  Air-conditioning plants :
(i)  Static	12.77
(ii)  Portable	33.40
(m)  (i) Office furniture and fittings	12.77
(ii)  Office equipments	12.77
(iii)  Internal wiring including fittings and apparatus	12.77
(iv)  Street light fittings	12.77
(n)  Apparatus let on hire
(i)  Other than motors	33.4
(ii)  Motors	12.77
(o)  Communication equipment :
(i)  Radio and high frequency carrier system	12.77
(ii)  Telephone lines and telephones	12.77
(p)  Any other assets not covered above	7.6