Income-tax (Twenty-Fourth Amendment) Rules, 2002 - 291/2002 - Income Tax

Income-tax (Twenty-Fourth Amendment) Rules, 2002 Notification No. 291 Dated 27th September 2002 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 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:- 'APPENDIX I [See rule 5] TABLE OF RATES AT WHICH DEPRECIATION IS ADMISSIBLE Block of assets Depreciation allowance as percentage of written down value PART A TANGIBLE ASSETS I. BUILDING |See Notes 1 to 4 below the Table] (i)Buildings which are used mainly for residential purposes except hotels and boarding houses 5 (ii)Buildings other than those used mainly for residential purposes and not covered by sub-items (11 above and (31 below (iii)Buildings acquired on or after the 1st day of September, 2002 for installing machinery and plant forming pan of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under clause (i) of sub-section (41 of section 80-1A 100 (iv)Purely temporary erections such as wooden structures 100 II. FURNITURE AND FITTINGS Furniture and fittings including electrical fittings |See Note 5 below the Tablet 15 III MACHINERY AND PLANT (I), Machinery and plant other than those covered by sub-items (2), (31 and (8) below 25 (2)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 (3) (i) Aeroplanes - Aeroengines (ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire 40 (iii) Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1999 and is put to use for any period 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 (11 of section 32 f See Note 6 below the Table 40 (iv) New commercial vehicle which is acquired on or after the 1st day of October, 1998, but before the 1st day of April, 1999 in replacement of condemned vehicle of over 15 years of age and is put to use for any period 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) 60 (v) New commercial, vehicle which is acquired on or after the 1st day of April, 1999, but before the 1st day of April, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the 1st 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] 60 (vi) New commercial vehicle which is acquired on or after the 1st day of April, 2001, but before the lst day of April, 2002 and is put to use the 1st day of April, 2002 for the purposes of business or profession [See Note 6 below the Table] 50 (vii) Moulds used in rubber and plastic goods factories 40 Air pollution control equipment/being- (a) Electrostatic precipitation systems 80 (b) Pelt-filler systems (c) Dust collector systems (d) Scrubber-counter current/venturi/packed-bed/cyclonic scrubbers (e) Ash handling system and evaculation system_______________________ (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 Hash mixing equipment (e) Mechanical flocculators and mechanical reactors (f) Diffused air/mechanically aerated activated sludge systems (g) Aerated lagoon systems (h) Biofilters (i) Methane-recovery anaerobic digester systems (j) Air floatation systems (k) Air/steam stripping systems (l) Urea Hydrolysis systems (m) Marine outfall systems (n) Centrifuge for dewatering sludge (o) Rotating biological contractor or bio-disc (p) Ion exchange resin column (q) Activated carbon column (x)(a) Solidwaste,controlequipmentsbeing,~-caustic/lime/chrome/ 80" mineral/cryolite recovery system (b) Solidwaste recycling and resource recovery systems (x) Machinery and.plant, used semi-conductor industry covering all integrated circuits (ICs) excluding hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration/very large 40 scale integration (LSI/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entnes (viii), (ix) and (x) of this sub-item and sub-item (8) below. C. Waste heat recovery equipment: (a) Economisers and feed water heaters (b) Recuperators and air pre-heaters 80 (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-condensing turbines for co-generation along with pressure boilers __________________80 (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 (e) Solid state devices for controlling motor speeds ______________________ 80 (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 (I) Special energy meters for Availability Based Tariff (ABT)______________ F. Burners: (a) 0 to 10 percent excess air burners (b) Emulsion burners _____________________________ 80 (c) Burners using air with jiigh_pre-heat temperature (above 300° C)________ G. Other equipment: (a) Wet air oxidation equipment for recovery of chemicals and heat (b) Mechanical vapour recompressors (c) Thin film evaporators ____________________ 80 (d) Automatic micro-processor based load demand controllers (e) Cool based producer gas plants (f) Fluid drives and fluid couplings (g) Turbo charges/super-charges (h) Sealed radiationsourcesfor radiation processing plants (x)Gas cylinders includingvalvesJmd regulators_________________________80 (xi)Glass jnanufacturing concerns -Direct fire glassJnelting furnaces__________80 (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. 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 _____her applications__________________________________ 80 Notes: 1. "Buildings" include roads, bridges, culverts, wells and tubewells. 2. A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential 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 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 desalinization, demineralisation and purification of water. 5. "Electrical fittings" include electrical wiring, switches, sockets, other fittings, and fans, etc. 6. "Commercial vehicle" means "heavy goods vehicle", "heavy passenger motor vehicle", "light motor vehicle", "medium goods vehicle", and "medium passenger motor vehicle" but 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 delivery 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 informal combustion engine capable of propelling the boat at a speed exceeding 24 kilometers 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 water." . Sd/- Deepika Mittal Under Secretary to the Government of India F.No.142/19/2002-TPL 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.