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The Central Board of Direct Taxes amends the Income-tax Rules, 1962 to provide higher depreciation rates for specific motor cars, motor buses, motor lorries, and motor taxis. The rules apply a thirty percent depreciation rate to motor cars not used on hire that are acquired between the 23rd day of August, 2019 and the 1st day of April, 2020 and put to use before the 1st day of April, 2020. The rules also apply a forty-five percent depreciation rate to motor buses, motor lorries, and motor taxis used in a business of running them on hire that are acquired between the 23rd day of August, 2019 and the 1st day of April, 2020 and put to use before the 1st day of April, 2020.
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MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 20th September, 2019 (Income-tax) G.S.R. 679 (E).—In exercise of the powers conferred by section 32 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules to further amend the Income-tax Rules, 1962, namely:—
(a) for sub-item (2) and entries relating thereto, the following shall be substituted, namely:- Block of Assets Depreciation allowed as per percentage of written down value 1 2 “(2) (i) 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 except those covered under entry (ii); (ii) Motor cars, other than those used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020. 15
30”;
(b) in sub-item (3), for paragraph (ii) and entries relating thereto, the following shall be substituted, namely:- Block of Assets Depreciation allowed as per percentage of written down value 1 2 “(ii) (a) Motor buses, motor lorries and motor taxis used in a business of running them on hire other than those covered under entry (b). (b) Motor buses, motor lorries and motor taxis used in a business of running them on hire, acquired on or after the 23rd day of August, 2019 but before the 1st day of April, 2020 and is put to use before the 1st day of April, 2020. 30
45”.
[Notification No. 69 /2019/ F.No. 370142/17/2019-TPL] SAURABH GUPTA, Under Secy. (Tax Policy & Legislation Division)
Explanatory Memorandum: It is certified that no person is being adversely affected by giving retrospective effect to this notification. Note : The principal rules were published in the Gazette of India vide notification number S.O. 969(E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 662(E) dated the 17th September, 2019.
