# Rates of Depreciation (Block of Assets)
Under the Income-tax Act, depreciation is claimed on blocks of assets — a group of assets falling within a class (tangible/intangible) carrying the same rate of depreciation. You do not depreciate individual assets; you depreciate the block.
## Intangible Assets
| Block | Assets | Rate |
|---|---|---|
| Block 1 | Patents, copyrights, trademarks, licenses (non-goodwill) | 25% |
> Note: Goodwill of a business/profession is no longer a depreciable asset — hence intangibles here are specifically non-goodwill.
## Buildings
| Block | Assets | Rate |
|---|---|---|
| Block 1 | Residential buildings (excluding hotels) | 5% |
| Block 2 | Non-residential buildings | 10% |
| Block 3 | Buildings for water supply/treatment (on or after 1 Sep 2002); temporary structures (e.g., wooden) | 40% |
## Furniture & Fittings
| Block | Assets | Rate |
|---|---|---|
| Block 1 | Furniture & electrical fittings (fans, wiring, sockets, etc.) | 10% |
## Plant & Machinery
| Block | Key items | Rate |
|---|---|---|
| Block 1 | Motor cars purchased 23.08.2019 – 31.03.2020; buses, lorries, taxis used for hire; moulds (rubber & plastic factories), semiconductor industry equipment | 30% |
| Block 2 | Buses, lorries, taxis (purchased 23.08.2019 – 31.03.2020) | 45% |
| Block 3 | Aeroplanes & engines; pollution control (water/air) & solid waste equipment, containers; life-saving medical equipment; specified renewable energy devices (EVs, windmills installed on/after 1 Apr 2014); energy-saving devices; computers incl. software & printers; books owned by professionals; books used in lending libraries | 40% |
| Block 4 | Ocean-going ships, inland vessels, speed boats | 20% |
| Block 5 | Renewable energy devices/windmills installed before 1 Apr 2014; motor cars (general, non-electric); any other P&M | 15% |
## How to read the motor-car rates
The special enhanced rates for motor cars exist to give a stimulus during the 23.08.2019 – 31.03.2020 window:
- A normal car (general use) → 15% (Block 5).
- A car bought in the stimulus window → 30% (Block 1).
- Buses/lorries/taxis used for hire → 30% normally; if bought in the stimulus window → 45%.
## Default rule
When an item of plant & machinery does not fit any special block, it falls into the residual 15% block ("any other plant & machinery").