Blog > Section 2(11) - Block of Assets

Section 2(11) - Block of Assets

by Varun Advani | 27 June 2015

 

BLOCK OF ASSETS [SEC.2 (11)]-the term “block of means a group of assets falling within a class of assets comprising –Tangible assets, being building, machinery, plant or furniture; 

 Intangible assets, being know –how, patents, copyright, trade mark, license, franchises or any other business or commercial of similar nature, 

In respect of which the same percentage of depreciation is prescribed.

A taxpayer may have 13 different blocks of assets [out of which 12 blocks are for tangible asset and 1 block is for intangible asset].

These blocks are given below-

 

Number

Nature of Asset

Rate of Depreciation

Block 1

Building –Residential other than hotel and boarding houses

5%

Block 2

Buildings-Office, factory, godowns or buildings which are not mainly used for residential purpose [it covers hotel and boarding houses but does not cover those which are covered under Blocks 1 and 3]

10%

Block3

Building –The followings:

a.     Building acquired on or after September 1,2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under section 80-IA(4)(i);

b.     Temporary erections such as wooden structures

100%

Block 4

Furniture –Any furniture/fittings including electrical fittings

10%

Block 5

Plant and machinery –Any plant or machinery [not covered by Block 6,7,8,9,10,11 or 12],motor cars (other than those used in a business of running them on hire )acquired or put to use on after April1,1990

15%

Block 6

Plant and machinery –Ocean-going ships, vessels ordinarily operating on inland waters including speed boats

20%

Block 7

Plant and machinery –Buses, lorries and taxies used in the business of running them on hire *, machinery used in semi-conductor industry, moulds used in rubber and plastic goods factories and life saving medical equipment

30%

Block 8

Plant and machinery –Aeroplanes. It also includes commercial vehicle acquired after September 30,1998 but before April 1,1999 and  life saving medical equipment and plant and machinery which satisfy conditions of rule5(2)

40%

Block 9

Plant and machinery –Containers made of plastic used as refills and the following –

a.     New commercial vehicle acquired 2001-02 and put to use before March 31,2002for the purpose of business or profession,

b.     Machinery/plant used in weaving ,processing and garment sector of textile industry which is purchased under Technology Upgradation fund  Scheme during April 1,2001and March 31,2004 and put to use up to March 31,2004;and

c.     New commercial vehicle which is acquired during January 1, 2009 and September 30, 2009 and is put to use before October 1, 2009 for the purposes of business or profession.

60%

Block 10

Plant and machinery –Computer **including computer software and commercial vehicle acquired in replacement of condemned  vehicle of 15 years of age which is put to use before April 1, 2000(if acquired during 1999-2000).It also includes book (other than annual publications)owned by a professional .It also includes gas cylinders; plant used infield operations by mineral oil concerns; direct fire glass melting  furnaces

60%

Block 11

Plant and machinery –Energy saving devices renewal energy devices; rollers in flour mills, sugar work and steel industry(however. it does not include windmills or any special device, which run on windmills installed after March 31,2012 but before April 1,2014)

80%

Block 12

Plant and machinery –Air Pollution control equipments; water control equipments; solid waste control equipments, recycling and resource recovery systems; machinery acquired and installed on or after September 1,2002 in a water supply project or water treatment system or for the purpose of providing infrastructure facility; wooden parts used inartificial silk manufacturing machinery ; cinematograph films, bulbs of studio light; wooden match frames; some plants used in mines, quarries and salt works; and books(being annual publications)owned by taxpayer s carrying on a profession or book  (may or may not be annual publications)owned by a person  carrying on business in running lending libraries 

100%

Block 13

Intangible assets (acquired after March 31 ,1998)-Know-how, patents, copyrights, trademarks, licenses, franchises and any other business or commercial right of similar nature

25%

 

 

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