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 1^st day of April, 2003.

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

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

hotels and boarding houses

Buildings other than those used mainly for residential purposes and

not covered by sub-items (1) above and (3) below

Buildings acquired on or after the 1^st day of September, 2002 for

installing machinery and plant forming part of water supply project

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

II. FURNITURE AND FITTINGS

Furniture and fittings including electrical fittings

[See Note 5 below the Table]

Depreciation

allowance as

percentage of

written down

value

100

THE GAZETTE OF INDIA : EXTRAORDINARY

IPART tl—SEC. 3(ii)l

III. MACHINERY AND PLANT

(1)

(2)

(3)

Machinery and plant other than those covered by sub-items (2), (3)

and (8) below

Motor cars, other than those used in a business of running them on

hire, acquired or put to use on or after the 1^st day of April, 1990

(i)

Aeroplanes - Aeroengines

(li)

Motor buses, motor lorries and motor taxis used in a

business of running them on hire

(iii)

Commercial vehicle which is acquired by the assessee

on or after the 1^st day of October, 1998, but before the

st day of April, 1V99 and is put to use for any period

before the 1^st 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 ITablel

(iv)

New commercial vehicle which is acquired on or after

the 1^st day of October, 1998, but before the I^s' day of

April, \999 in replacement of condemned vehicle of

over 15 years of age dnd is put to use for any period

before the 1^st 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 1^st day of April, 1999 but before the 1^st day of April,

2000 in replacement of condemned vehicle of over 15

years of age and is put to use before the 1^st 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]

(vi)

New commercial vehicle which is acquired on or after

the 1^st day of April, 2001 but before the 1^st day of April,

2002 and is put to use before the 1^st day of April, 2002

for the purposes of business or profession [See Note 6

below the Table]

(vii) Moulds used in rubber and plastic goods factories

(viii) Air pollution control equipment, being -

(a) Electrostatic precipitation systems

(b) Felt-filter systems

(d) Scrubber-counter current/venturi/packed-

bed/cyclonic scrubbers

(e)Ash handling system and evacuation system

(4)

(5)

(6)

(7)

(8)

(ix)

Water pollution control equipment, being -

(a) Mechanical screen systems

(b) Aerated detritus chambers (including-air compressor)

(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

(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,

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

(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.

Containers made of glass or plastic used as re-fills

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 1^st day of

April. 2001 but before the I^s1 day of April, 2004 and is put to use before the

l^5t 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

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]

(i) Wooden parts used in artificial silk manufacturing machinery

(ii) Cinematograph films - bulbs of studio lights

(iii) Match factories - Wooden match frames

(iv) Mines and quarries:

(a) Tubs, winding ropes, haulage ropes and sand stowing

pipes

(b) Safety lamps

(v) Salt works - Salt pans, reservoirs and condensers, etc., made of

earthy, sandy or clayey material or any other similar material

(vi) Flour mills - Rollers

(vii) Iron and steel industry - Rolling mill rolls

(viii) Sugar works - Rollers

100

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART II—SEC. 3(ii)l

(ix) Energy saving devices, being-

A. Specialised boilers and furnaces:

(a) Ignifluid/fluldized bed boilers

(b) Flameless furnaces and continuous pusher type furnaces

(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

(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

(b) Recuperators and air pre-heaters

(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

pressure boilers

(b) Vapour absorption refrigeration 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

(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

(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)

F. Burners:

(a) 0 to 10 per cent excess air burners

(b) Emulsion burners

G, Other equipment:

(a) Wet air oxidation equipment for recovery of chemicals and

heat

(b) Mechanical vapour recompressors

(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

(x)

Gas cylinders including valves and regulators

(xi)

Glass manufacturing concerns - Direct fire glass melting furnaces

(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 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

(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

(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

THE GAZETTE OF INDIA : EXTRAORDINARY

[PART I I—SEC. 3(ii)]

(9)

IV. SHIPS

(1)

(2)

(3)

(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 lending

libraries

Ocean-going ships including dredgers, tugs, barges, survey launches and

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

below

Vessels ordinarily operating on inland waters being speed boats [See Note

10 below the Tablel

PARTB

INTANGIBLE ASSETS

Know-how, patents, copyrights, trademarks, licences, franchises or any other

business or commercial rights of similar nature

100

Notes:

1. "Buildings" include roads, bridges, culverts, wells and tubewells.

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 26^th March,

1962 and last amended by Income-tax (Twenty-Third Amendment) Rules, 2002 vide Notification

S.O. No. 943 (E), dated the 6^th September, 2002.

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.mil I'uMishcd by llu: Controller of Publications, L)dhi-110054.