CBDT amends Income Tax Rules,1962 to provide higher rate of depreciation on motor vehicles with effect from 23rd day of August, 2019

CBDT amends Income Tax Rules,1962 to provide higher rate of depreciation on motor vehicles with effect from 23rd day of August, 2019

September 24, 2019 Fiscal, Industries, states 0

Central Board of Direct Taxes (CBDT) has issued Notification No. 69/2019 dated 20th September, 2019 to further amend Income tax Rules, 1962 which shall come into effect from 23rd day of August, 2019.

Key Points of the Notification are :

  1. In Part A of the table in the New Appendix 1 of the Income-tax Rules, 1962 relating to the rates at which depreciation is permissible for plant and machinery (under Tangible Assets), items relating to motor vehicles i.e. motor cars, motor buses, motor lorries and motor taxis has been substituted with effect from 23rd day of August, 2019 to provide higher rate of depreciation on the same.
  2. Item 2 falling under Plant and Machinery has been substituted which is relating to Motor cars other than those used in a business of running them on hire, to provide higher rate of deprecation which shall be allowed at a rate of 30% of written down value if such block of Assets qualifies the follows criteria’s –
  • Motor cars are other than those that are used in a business of running them on hire
  • Has been acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020
  • Has been put to use before the 1st day of April, 2020.

 3. Sub item 2 of item 3 falling under Plant and Machinery has been substituted which is relating to Motor buses, motor lorries and motor taxis used in a business of running them on hire, to provide higher rate of deprecation which shall be allowed at a rate of 45% of written down value if such block of Assets qualifies the follows criteria’s –

  • Motor buses, motor lorries and motor taxis that are used in a business of running them on hire
  • Has been acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020
  • Has been put to use before the 1st day of April, 2020.

For further details please refer the attached document.

Source: Central Board of Direct Taxes

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