Income Tax Depreciation Rates for AY 2026-27: Common Asset Blocks
A practical tax depreciation chart for common assets under the Income-tax Act, 1961 for AY 2026-27, including buildings, furniture, plant, motor cars, computers and intangibles.
For FY 2025-26 / AY 2026-27, tax depreciation continues under the Income-tax Act, 1961 and the applicable depreciation-rate schedule.
Common depreciation rates
| Asset block | Common WDV rate |
|---|---|
| Residential buildings | 5% |
| Non-residential buildings – general category | 10% |
| Furniture and fittings including electrical fittings | 10% |
| General plant and machinery | 15% |
| Motor cars not used in business of running on hire – general category | 15% |
| Motor buses, lorries and taxis used in business of running on hire – general category | 30% |
| Computers including computer software | 40% |
| Specified intangible assets such as know-how, patents, copyrights, trademarks, licences and franchises | 25% |
The rate is not the whole calculation
Tax depreciation is calculated on a block-of-assets basis. The working should consider:
- opening tax WDV;
- additions during the year;
- put-to-use date;
- assets used for less than 180 days;
- sale consideration / deletions; and
- special asset categories.
Book depreciation can differ
Do not copy tax depreciation into the financial statements. Book depreciation follows the applicable accounting framework, while tax depreciation follows statutory blocks and rates.
assureOffice Financial Builder can help prepare the book-side PPE/depreciation presentation, while tax depreciation should remain a separate tax working.
Use the rate only after confirming the correct asset block and put-to-use facts.