The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 360] NEW DELHI, MONDAY, JULY 24, 1978/SRAVANA 2, 1900
Separate paging is given to this Part in order that it may be filed as a separate compilation.
916 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] Explanatory Memorandum CENTRAL BOARD OF DIRECT TAXES NOTIFICATION New Delhi, the 24th July, 1978INCOME-TAX
S.O. 464(E).—In 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 Ihe following rules further to amend the Income-tax Rules. 1962, name- ly :~
1. These rules may be called the Tncome-tax (Eijihth
Amendment) Rules, 1978.
2, In Part I of Appendix I to the Income-tax Ru'es, 1962, in the Table of rates at which depreciation is admissible in the heading "III. Machinery and Plant (not being a ship)", in sub-heading (ii), in group D, for item (9), the following items shall be substituted, and shall be deemed to have been substituted with effect from the lfrt day of April, 1978, namely:—
"(9) Motor buses, motor lorries, molor taxis
IN.E.S.A.l
(9A) Motor tractors, harvesting combines
[N.E.S.A,]"- Under the Income-tax Rules, 1962, machinery and plant have been classified under seven broad categories of useful life for the purpose of grant of depreciation allowances. The rates of depreciation laid down in this behalf are 5 per cent, 10 per cent, 15 per cent, 20 per cent, 30 per cent, 40 per cent and 100 pee cent of the written down value, depending on the useful life of the specific items of machinery or plant falling under different categories as aforesaid. In respect of. any item of machinery or plant not coming under the lower specific rate of 5 per cent, or any of the higher speci- fic rates of 15 per cent, 20 per cent, 30 per cent, 40 per cent or 100 per cent, depreciation is admissible at the gene- ral rate of 10 per cent. As 'harvesting combine' is not cover- ed under any of the classified heads of machinery and plant in relaiion to which specific rates of depreciation have been laid down, it falls under the residuary category of machinery and plant qualifying for depreciation at the general rate of 10 per cent.
2. The amendment to Part I of Appendix I to the Income- lax Rules, 1962 provide? that depreciation will be allowed in respect of harvesting cornbines at u specific rate of 30 per cent. As this amendment seeks to allow a higher rate of depreciation in respect of harvesting combines, the interest of no person will be prejudicially affected by reason of retrospective effect being given to the aforesaid amendment.
[No. 2435/F. No. 142(32)/77-TPL] S. N. SHENDH, Secy.