REGD. NO. D. L.-33004/94 The Gazette of India
EXTRAORDINARY
PART II—Section 3-Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 855 ] NEW DELHI. FRIDAY, SEPTEMBER 27, 2002/ASVINA 5, 1924
3058 G1/2002
(1)? THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
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1 4 THE GAZETTE OF INDIA : EXTRAORDINARY [PAKI II—SEC. 3(ii)] 5 6 THL GAZETTE OF INDIA: EXTRAORDINARY [PART II-—SEC. 3(ii)l 7 8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)l 9 10 THE GAZETTE 01- INDIA : EXTRAORDINARY [PART II—SF.C. 3(ii)lII MINISTRY OF FINANCE AND COMPANY AFFAIRS
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TEXES)
NOTIFICATION
New Delhi, the 27th September, 2002
INCOME-TAX
s.o. 1O46(E).— ,|n exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income-tax (Twenty-Fourth Amendment) Rules, 2002.
(2) They shall come into force from the 1st day of April, 2003.
2. In the Income-tax Rules, 1962, for Appendix I, the following Appendix shall be substituted, namely:-
'APPENDIXI
[See rule 5]
TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE
| Block of assets Depreciation allowance as percentage of written down value | |
| 1 2 | |
| PART A TANGIBLE ASSETS 1 . BUILDING [See Notes 1 to 4 below the Table] | |
| (1) (2) (3) (4) | Buildings which are used mainly for residential purposes except 5 hotels and boarding houses |
| Buildings other than those used mainly for residential purposes and 10 not covered by sub-items (1) above and (3) below Buildings acquired on or after the 1st day of September, 2002 for installing machinery and plant forming part of water supply project 100 or water treatment system andwhich is put to use for the purpose of business of providing infrastructure facilities under clause (i) of sub- section (4) of section 80-IA | |
| Purely temporary erections such as wooden structures 100 | |
| II. FURNITURE AND FITTINGS Furniture and fittings including electrical fittings 15 [See Note 5 below the Table] |
| 1 2 III. MACHINERY AND PLANT Machinery and plant other t h a n those covered by sub-items (2), (3) a n d (8) below 25 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 (i) Aeroplanes - Aeroengines 40 (li) Motor buses, motor lorries and motor taxis used in a business of running t h e m on hire |
| (iii) Commercial vehicle w h i c h is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1V99 a n d is put to use for any period before the 1st day of April, 1999 for the purposes of 40 business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [See Note 6 below the ITablel |
| (iv) New commercial vehicle which is acquired on or after the 1st day of October, 1998, but before the Is' day of April, \999 in replacement of condemned vehicle of over 15 years of age d n d is put to use for any period 60 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] |
| (v) New commercial vehicle which is acquired on or after the 1st day of April, 1999 but before the 1st day of April, 60 2000 in replacement of c o n d e m n e d vehicle of over 15 years of a g e and is put to use before the 1st day of April, 2000 for the purposes of business or profession in a c c o r d a n c e with the second proviso to clause (ii) of sub-section (1) of section 32 [See Note'6 below the Table] |
| (vi) New commercial vehicle which is acquired on or after 50 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] |
| 40 (vii) Moulds used in rubber and plastic goods factories * (viii) Air pollution control equipment, being - (a) Electrostatic precipitation systems 80 (b) Felt-filter systems (c) Dust collector systems (d) Scrubber-counter current/venturi/packed- bed/cyclonic scrubbers (e)Ash handling system and evacuation system |
| 1 2 | (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 80 (g) Aerated lagoon systems (h) Biofllters (i) Methane-recovery anaerobic dige"ster systems (j) Air floatation systems (k) Air/steam stripping systems ( 1 ) Urea Hydrolysis systems (m) Marine outfall systems (n) Centrifuge for dewaterlng sludge (o) Rotating biological contractor or bio-disc (p) Ion exchange resin column (q) Activated carbon column |
| (x) (a) Solidwaste, control equipments being, 80 caustic/lime/chrome/ mineral/cryolite recovery system (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 40 (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. | |
| (4) | 50 Containers made of glass or plastic used as re-fills |
| (5) (6) (7) (8) | 60 Computers Including computer software [See note 7 below the Table] 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 50 April. 2001 but before the Is1 day of April, 2004 and is put to use before the l5t day of April, 2004 [See Note 8 below the Table] Machinery and plant, acquired and installed on or after the l j t day of September, 2002 in a water supply project or a water treatment system 100 and which i s 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] (i) Wooden parts used in artificial silk manufacturing machinery 100 |
| (ii) Cinematograph films - bulbs of studio lights 100 (iii) Match factories - Wooden match frames 100 | |
| (iv) Mines and quarries: 100 (a) Tubs, winding ropes, haulage ropes and sand stowing pipes (b) Safety lamps (v) Salt works - Salt pans, reservoirs and condensers, etc., made of 100 earthy, sandy or clayey material or any other similar material | |
| (vi) Flour mills - Rollers 80 | |
| (vii) Iron and steel industry - Rolling mill rolls 80 | |
| (viii) Sugar works - Rollers 80 |
| 1 2 | |
| (ix) Energy saving devices, being- A. Specialised boilers and furnaces: (a) Ignifluid/fluldized bed boilers (b) Flameless furnaces and continuous pusher type furnaces (c) Fluidized b"ed type heat treatment furnaces 80 (d) High efficiency boilers (thermal efficiency higher than75 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 80 (d) Infra-red thermography (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) Economlsers and feed water heaters 80 (b) Recuperators and air pre-heaters (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-condenslng turbines for co-generation along with 80 pressure boilers (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 80 (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 (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 ( 1 ) Special energy meters for Availability Based Tariff (ABT) |
| 1 | ||
| F . Burners: (a) 0 to 10 per cent excess air burners 80 (b) Emulsion burners (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 80 (c) Thin film evaporators (d) Automatic micro-processor based load demand controllers (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 | ||
| 80 (x) Gas cylinders including valves and regulators (xi) Glass manufacturing concerns - Direct fire glass melting furnaces 80 | ||
| (xii) Mineral oil concerns: (a) Plant used in field operations (above ground) distribution - Returnable packages 80 (b) Plant used in field operations (below ground), but not including kerbside pumps including under ground tanks and fittings used in field operations (distribution) by mineral oil concerns (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 drivers 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 ( 1 ) Wind mills and any specially designed devices which run on wind mills (m) Any special devices including electric generators and pumps running on wind energy (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 |
| 1 | |
| (9) | (i) Books owned by assessees carrying on a profession - (a) Books, being annual publications (b) Books, other than those covered by entry (a) above (ii) Books owned by assessees carrying on business in running libraries |
| IV. SHIPS | |
| Ocean-going ships including dredgers, tugs, barges, survey launches and (1) other similar ships used mainly for dredging purposes and fishing vessels with wooden hull | |
| Vessels ordinarily operating on inland waters, not covered by sub-item (31 (2) below Vessels ordinarily operating on inland waters being speed boats [See Note (3) 10 below the Tablel | |
| PARTB INTANGIBLE ASSETS Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature |
Notes: 1. "Buildings" include roads, bridges, culverts, wells and tubewells. 2. A building shall be deemed to be o building used mainly for residential purposes, if the built-up floor area thereof used for residentidl 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 desallnisation, demineralisation and purification of water 5. "Electrical fittings" include electrical wiring, switches, sockets, other fittings end fans, etc. 6. "Commercial vehicle" means "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle" and "medium passenger motor vehicle" bu1 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/l/99-CTI of 31.3.1999.
9. Machinery and plant includes pipes needed for deliver)/ 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 kilometres 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 wqter'.
[Notification No. 291 /2002/F. No. 142/19/2002-TPL]
DEEPIKA MITTAL, Under Secy.
Note.- The principal rules were published vide Notification No.S.O.969(E), dated the 26th March, 1962 and last amended by Income-tax (Twenty-Third Amendment) Rules, 2002 vide Notification S.O. No. 943 (E), dated the 6th September, 2002.
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