# Rates of Depreciation under Section 32
## Depreciation Rate Table
| Rate | Assets Covered |
|---|---|
| 5% | Residential buildings |
| 10% | General buildings, Furniture |
| 15% | Plant & Machinery (normal), Motor Vehicle (normal), Oil wells, Windmills installed before 01.04.2014 |
| 20% | Ships |
| 25% | Intangible Assets (know-how, patents, copyrights, etc.) |
| 30% | Motor vehicles used for hire |
| 40% | Electric vehicles, Computers/Laptops, Aircraft, Books (any), Pollution control equipment, Temporary buildings, Windmills installed on or after 01.04.2014 |
## Building Classification
| Type | Rate |
|---|---|
| Residential | 5% |
| General (commercial/factory) | 10% |
| Temporary structures | 40% |
## Important Classifications
### Computers and Related
- Mobile phones / EPABx → NOT computers → depreciation 15%
- UPS / Printer / Scanner & other computer accessories → treated as part of computer block → 40%
### Plant & Machinery — What's Included
Included: Ships, Vehicles, Books, Scientific Appliances, Surgical Equipments
NOT Included: Tea Bushes, Livestock, Building, Furniture
## Half-Rate Depreciation Rule (Proviso to Sec 32(1))
If an asset is acquired AND put to use for less than 180 days during the previous year → Half rate depreciation allowed.
### Cut-off Date
- Assets acquired & put to use on or before 3rd October → Full rate
- Assets acquired & put to use on or after 4th October → Half rate
### Important Limitation
- This proviso applies ONLY in the first year of acquisition.
- Once full year passes, full-rate depreciation applies even if used for fewer days in subsequent years.
### Acquisition vs Put-to-Use Timing
If asset is acquired in P.Y. 2024-25 but put to use in P.Y. 2025-26:
- Even if used for less than 180 days in PY 2025-26, FULL rate of depreciation is allowed (because the half-rate proviso applies only in the year of acquisition).
## Proportionate Depreciation for Mixed Use
If an asset is not exclusively used for business, deduction is restricted to the proportionate part used for business.