Depreciation is allowed on capital assets (except goodwill and trademarks) on the basis of diminishing-balance method at following prescribed rates:
|Buildings, roads, etc.||2%|
|Plant and machinery and generators||10%|
|Furniture and fittings||10%|
|Air conditioning units||12.5%|
|Computers and computer software||33.33%|
Initial allowances are applicable on industrial buildings and capital expenditures incurred on plant and machinery by companies engaged in trade or undertaking. Additionally, an annual allowance of 2% is granted on all buildings.
Start-up expenses like costs of incorporation and other initial start-up costs, may be written off in five years using straight-line method.