Depreciation Rates

Written-down-value rates under the Income Tax Act and useful lives under Schedule II of the Companies Act.

As of FY 2025-26

Income Tax Act, 1961 (written-down value, Rule 5 Appendix I)

Asset	Rate
Buildings – residential	5%
Buildings – office, factory, godown, hotel	10%
Buildings – purely temporary erections such as wooden structures	40%
Furniture and fittings, including electrical fittings	10%
Plant and machinery – general	15%
Motor cars, other than those used in a business of running them on hire	15%
Motor buses, lorries and taxis used in a business of running them on hire	30%
Computers and computer software	40%
Books – annual publications, and books used by a professional	40%
Air and water pollution control equipment	40%
Renewable energy devices such as windmills and solar plants	40%
Ships	20%
Aircraft	40%
Intangible assets – know-how, patents, copyrights, trademarks, licences, franchises	25%

Asset	Useful life
Buildings other than factory buildings – RCC frame structure	60 years
Buildings other than factory buildings – other than RCC frame	30 years
Factory buildings	30 years
Fences, wells, tube wells	5 years
Temporary structures	3 years
Plant and machinery – general	15 years
Plant and machinery – continuous process plant	25 years
Furniture and fittings – general	10 years
Furniture and fittings – hotels, restaurants, schools, theatres	8 years
Motor cycles, scooters and other mopeds	10 years
Motor cars, other than those used in a business of running them on hire	8 years
Motor buses, lorries and taxis used in a business of running them on hire	6 years
Computers – servers and networks	6 years
Computers – desktops, laptops and other end-user devices	3 years
Office equipment	5 years
Electrical installations and equipment	10 years
Aircraft or helicopters	20 years

Income Tax Act: half the rate applies when an asset is used for less than 180 days in the year it is first put to use.
Income Tax Act: additional depreciation of 20% is available on new plant and machinery used in manufacturing or power generation (section 32(1)(iia)).
Companies Act: residual value is normally not more than 5% of original cost, and depreciation is spread over the useful life under the straight-line or written-down-value method.
Companies Act: a different useful life may be used if justified in the financial statements.

For illustration only. Please consult your chartered accountant for advice specific to you.