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What are the Block of Assets as per section 2 11

What are the Block of Assets as per section 2 11

Block of Assets

 As per section 2(11) of income tax act 1961 block of assets means a group of assets falling within the same class of assets it contains

a)        Tangible assets, being buildings, machinery and plant or furniture

b)        intangible assets, being know how, patent, copyrights, trademark, license and franchise or any other business.

The same rate of percentage of depreciation is prescribed. A block of assets includes assets of all units of assessee having same rate of depreciation. A assessee may have thirteen different blocks of assets.

  

Number

Nature of assets

Rate of depreciation

Block 1

Buildings - Residential buildings other than hotels and boarding houses

5

Block 2

Buildings - Factory, Offices, godowns or buildings which are not mainly used for residential purpose

10

Block 3

Building - the following buildings :

a)        Buildings acquired on or after September 1st 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

b)        Temporary erections such a wooden structures

100

Block 4

Furniture - Any furniture/fitting including electrical fittings

10

Block 5

Plant and machinery - Any plant or machinery and motors cars acquired or put to use on or after April 1st 1990

15

Block 6

Oceans - 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

30

Block 8

Plant and Machinery - Aeroplanes besides it includes commercial vehicle which is acquired after September 30th 1998 but before April 1st 1999 and it is put to use for any period prior to April 1st 1999 and  life saving medical equipment

40

Block 9

Plant and Machinery - containers made of glass or plastic used as refills, plant and machinery which satisfy condition

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

b)        Machinery or plant used in weaving, processing and garment sector of textile industry which is purchased under Technology up gradation fund scheme during April 1st 2001

c)         New commercial vehicle which is acquired during January 1st 2009 and September 30th 2009 and is put to use before October 1st 2009 for the purpose of business or profession

50

Block 10

Plant and machinery - Computers including computer software besides it includes new commercial vehicle required in replacement of condemned vehicle of 15 years of age and put to use before April 1st 1990

60

Block 11

Plant and Machinery - Energy saving devices renewal energy devices wind mills, electric generators or pumps running on wind energy, rollers in flour mills, sugar works and steel industry

80

Block 12

Plant and machinery - Air pollution control equipment, water pollution control equipment, solid waste control equipment, recycling and resource recovery systems, machinery acquired and installed on or after September 1st 2002 in a water supply project or water treatment system or for purpose of providing infrastructure facility, wooden parts used in artificial silk manufacturing machinery.

100

Block 13

Intangible assets like know how patents, copy rights, trade marks, license, franchise and any other business rights

25

 

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