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The rate of depreciation on computers, including computer software, under the Income-tax Rules is:
A15 per cent
B40 per cent
C25 per cent
D30 per cent
Answer & Solution
Correct answer: B. 40 per cent
1. The depreciation table under Rule 5(1) places computers including computer software in the plant and machinery block carrying 40%.
2. Peripheral equipment such as UPS, printers and laptops is treated as part of the same computer block at 40%.
3. General plant and machinery not specifically listed attracts only 15%, which is the common trap.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 3 PGBP, PDF p. 26_
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