sitaa Finalization ‘The most important and crucial function of fiianclal accounting isto ascertain the financial postion and the profitability ofthe busindss. The trading and profit and loss account show the profit or loss of the business. The Balance Sheet depicts the financial position ofthe business. ‘Trail Balance Concepts Soon Transaction Closing Bat | eo CapitelAle | 10000006r | [70.0010 Gr [Leans(tiab) | 10,00,000Cr_| 50,000 {9.50.00 Cr Liabilities have Cunent —_[500000Gr {7.00000 |300000 | 1oa¢r | | Credit Balance Licbity [Fixed Assets | 15000000r | 50q000-f'80000 ” [18S00005r [_ Assetshave Current Assels | 10,00,000,0r ( | 19:00,000"|9,00,000__| 11,00,000Dr Debit Balance Sales Account 50.00000 |s000000¢r [} Soles have credit Bo. Purchase | 3500000 35,00,000 Dr Account —_| | Purchases & |indrect 70x00 vasoooomr | Eames | Expenses jBeerses _j__i__ Profi & Loss 450000 | 4500006 |_Net Profit /Loss Ale | { have crecit/Debit Bal Total £8,00,000)|68,00,000 | Share Capital % PartnershipFim:ThereisnolimitforCapitallnvestmentAmount & Company: Minimum Amount of Rs. 1,00,000 have to invest for Capital. Equity is contribution of Directors. Two persons can invest Capital, but as per the new rule One Person can also invest to start a Company. Company have to show the names of the directors investing mare than 5% of the Total Share Capital as per Schedule3, ‘Equity Share Capital Comprises of Authorized & IssuedCapital + AuthorizedCapitalsTheauthorizedsharecaptallornominalsharecapitaljeanbes the déscribed as the maximum amount of share capital that the company {s authorized by its Constitution / Memorandum & Articles of Association 10 issue (allocate) toshareholders. ‘© tssuedShareCapital:ThelssuedShareCapitalisthetotalofthesharecapitalissued{alioca ted) to shareholders.sitaa SharePremium:Whenthecompanydecidestoissuesharesatapricehigherthanthenominal valueor face value, we call it shares issued at a premium. The Premium will reflect in special account Known as Shares Premium Account. Reserves & Surplus Reserves are AccumulatedProfit 4 Dividend to Share Holders are paid fromReserves. Secured Loan [A secured loan is a loan backed by collateral nancial assets you own, lke 8 homé, ear, machinery, etc.f Secured Loan is taken from Bank then TDS on Interest will not be applicable on the Interest component on EMI pad if rr eM corey Interest TDSto oo or) April 25,000 7,000 18,000 1,800 1,800 May 25,000 7,000 18,000 1800 31,800 dune 25,000 7,000 18,000 3,800 1800 Total 75,000 22,000 ‘54,000 5,400 5.400 s.5€00 can be claimed as refund from NBFC once return filing of particular Quarter is done. Bank Overdraft ‘An overdraft / Cash Credits the facility provided by the Bank to the current account holder for cash, flow purpose against the Security. Drawing power is the amount which Company is eligible to use for Cash Credit Calculation of drawing power Total Debtors 2,00,00,000 Debtor: Dus in90 days | 1.50.00,000 | Chartered Accountant Certifies on provisional financial & ore ellgbie stock statement as per the stock take conducted on stock '50,00,000__} monthly basies or Quarterly basis to Renew Overdraft Less: Creiter (outflow) | (15,00,000) 1,85,00,000 oss 25% 44.25.000 [Drawing Power 3,38,75,000Sitaa EL ores EMI Payment Entry- Bajaj Finance Limited (Loan 7,000 Secured Loans Taken) A/c._Dr. Interest A/e...Dr 18,000 Indirect Expenses ToBank A/c 25,000 Bank Accounts TDS Due Entry- ‘TDS Receivable(@ajaj finance) 11300 Loans & Advances Aer. (assets) ToTDSom Interest 1800 Duties & Taxes (Payable) Aye ‘TDS Payment Entry(7" of Every Month) ‘TDS on Interest (Payable) 11800 Duties & Taxes Ale_Dr. ToBank Ae 11800 Bank Accounts ‘TDS Amount Received form NBFC Receipt Entry- Bank Afe_Dr, 1800 Bank Accounts ‘To TDS Receivable(baja} 1800 Loans & Advances ‘inance) Ale (assets) ‘Unsecured Loan, When companies al assets are against security f then want more loan for business the last resort is they can approach shareholders, directors or their relatve(Bload relation people ~ Parents, brother, Sister, children's & spouse etc) The Loan amount must be earned by Share Holders or Relatives, not borrowed from any Bank or Financial Institution. Interest on Loan is not Mandatory However if Interest is payable Company can decide the Rate of Interest by passing the resolution on Unsecured Loan. However RO1 cannot Exceed 12% pa Accounting Entry De e fou Interest on Unsecured Lean (Mr Alor. | 10,000 Indirect Expense ‘Te Mr A(Loan Taken) 9000 | Unsecured Loans ‘Jo TOS— Interest (Others) 3000 | Duties & Taxessitaa Provisions / Outstanding Expenses ‘Accrual Concept:Accrualis concerned with excepted future cash reteipts & Payments Records ofall ‘expenses & incomes relating to the accounting perfou whether actual cash has been paid or received or not. ‘Accounting Salary Payable for Month of March Rs. 5,00,000 ? Entry or. a erat ‘Booking of Provision on 31" March Salary A/e..Dr 500,000 Indirect Expenses “To Provision for Salary A/c 5,00,000 | Provisions (CL) Payment of Salary in April Month Provision for Salary A/C... Dr 5,00,000 Provisions (CL) ‘To Cash/Bank A/c 5,00,000 | Cash / Bank Prepaid Expenses Prepaid expenses are future expenses that have been paid in advance. Insurance paid Rs.24000 for ‘12months on 1" Jan 2020, Find Prepaid Amount Journal Entries to the same transaction om ee 3V on 1 Jon 2020 Insurance A/c... Or 6,000 indirect expenses Prepoidinsurance fe | 18,000 ‘Curent Assets To insurance Payable A« | 24,000 | Provisions (CL) T# apni Reverse Entry Insurance AVG... Dr 18.000 Indirect Beerses | To Prepaid insurance A/c | 18,000 |Cureni Assets |Sundry Creditors (Check Whether Ledgers of creditors are having Closing Balances as DebitAmount, Reason for Debit Amount as Closing Balances of Greditors—1) Advance Payment made to Creditors or 2) Bill not booked & Paymentmade Effect of Bill not booked Check Whether Ledgers of Creditors are having Debit & Credit Transactions as nil .e. no transaction recorded in the whole FinancialYear. Write off Entry: CreditorsA/c...Dr. To Sundry Balance Write off A/c Fixed assets © ‘Fixed Ascoté comprised of Tangible & Intangible Accets Where Ta ble Assets are Goodwill, Wabsite,etc. Furniture & Fixtures, etc. and Intar sitaa fe Assets are Shap, The Expenses incurred until the installation of Fixed Assets gets included in the Fined Asset ‘sett but theSparePartsPurchasedlateronwiltnotbecomethepartofFixedAssets Eg-TransportationCharges aidwhilepurchaseofMachinery, InstallationChargespaidfor installationofACwillgetaddedtoFixe d AssotCost © Depreciation is must to be Charged on FinedAcsats Depreciation is Calculated as per Income Tax Act as well as CampaniesAct ‘Depreciation as per Incame Tax Depreciation as per Companies Act ‘© Rates Fined Rates % CalculationMethod:WOVMethod © BasisofCharge-HalfDepreciationwillbe ‘charged if Asset used for less than 180 ‘days otherwise full yearDepreciation ® Rates-Canadoptcifierentratesbazedon Period of use / (age) ofAsset. + CalculationMethod-basedoniifeofasset & Straight LineMethod, ‘Basis of Charge - Depretiationis proportionate to the period ofuse.sitaa Investment + Company can Invest in Shares, Debentures of other Companies, Mutual Funds, Securities, Bonds, ete, + Documents of Various Investment must be available for reference, + Acérued Interest must be booked at the end of the year Let Understand with help of Example : Investment made of Rs. 1,00,000 on 1"Jan 2020 for 3 Year @8% p.a Interest will be received at the time of maturity but as per accrual concept we have to record interest AS income every year Interest Calculation Schedule: Cr on zoi¢20 | yonoo0 [2000 | 1.02000 ee, zomo2t | ozo | a1 | 1.0160 Inlres Receivable nlc Dr [2000] TcumentAcots | |202-22| 110160 | ears | 1.18973 ToFD interest [23 Yindiectineome | [an27-23[ 118973 | 7.198 | 1.2411 s.12. 2078 atckty) Bonk A/c .... Dr 1611 ToD Wo. BSBA To Interest Receivable A/c Advance Ts A.every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in ‘advance, in the form of “advance tax” person not Liable to Pay advance Tax? ‘Who is liable? How to Calculate Estimated Tax Liability? ‘Computation (Provisional or Estimated) ~ Beginning ofthe year Estimated Income From all Sources of Income 0% (Considering last year's Trend ) Less: Deductions 009) Taxable Income X00 ‘Tax Liability (after considering Rebate & Cess) xx Less: Tax Deduction at source (004) ‘Advance Tax Liability xEntries to be passed TH instaiment [Advance Tax (A¥ 2021) [151000 ‘Curent Aso ToBankase 15000, [BankAccounts [2installment [Advance Tax (AY 20-21) [80,000 ‘Current Assets To Bork Ae [30.000 | Bank Accounts Bed Installment [Advance TaxiAY 2021) [30000 [Curent Assois ToBork Alc ‘30.000 | Bank Accounts [# instalment [Advance Tax iAY 2021) [251000 [Curent Assets "To Bonk Ale '25000 [Bank Accounts pa Ere Se re Bremond All assesse Min.15% of | Min.45% of | Min. 75% of Min 100% of (other than 44D or | advance tax | advance tax | advance tax advance tax 44A08) Taxpayers who opted | Nil Nil Nil ‘Min 100% of for presumptive taxation scheme of sec. jalechins AAD or sec.44ADA The interest for late payment if set at 196 oF the amount of tax due. itis calculated from the individual cut off dates shown above, tll the date of actual payment of outstanding taxes. Calculation of Interest under section 234C - In case of a Taxpayer other than the one opting for presumptive income u/s 44AD. ave ofinerest Peridot Aout on which interest Interest ealelted Advance Taxpuidonorbeorelune15islesthan Simple interest 61% 3months _15Haf Amount taxaendy 'taevanceTaxpald on orbeforeSeptember 1Sis less Simple terest @1% Smits, /_a83eof out taxaready than asiof the Amun” permorth deposited before eptember 15, Advance Taxpaidon or before OccemberIsisless Simple teest@1% | Smanths ——_75HLof Amount taxaeasyir AayanceTa psigon oF beteresparen isis than sovisar near Smpinteret @2% = permontn Sitaa 00h ot amount” ax arecy fepostee bears Maseh 22 Consider that your tataltaxliablity for this financial year is Rs. 100,000 and it needs to-be paid in installments a: eiplained above, Assume there ieno TDS here. If you made partial payments instead, you will be liable to pay interest as per the last column in the table below: Payment Dates Advance Tax. Total Advance payable Tax paid 15th June 15,000 5,000 Sth September 45,000, 25,000 15th December “| 75,000 35,000 35th March 300,000 $0,000 Sundry Debtors (Check whether the Ledger of Debtors are having Credit Amount as ClosingBalances. ‘Reason for Credit amount as dosing balances of Debtors ~ Advances received framDebtars. Check Whether Ledgers of Debtors are having Debit & Credit Transactions 2: il ie.no tranzaction recorded in the whole Financial Year. We can write off the Debtors Balance only after period of threeyears Shortfall Penalties (Cumulative) (Cumulative) 110,000 @1% * 310,000 = 300 220,000 @1% * 3 *20,000=600, 40,000 @1% "3 *40,000=1200 50,000 41% * 1*50,000-500 aye stamina BD) Nctetgeiee ssinnForeign Debtors Realized Exchange Gai he amount Rs. 2,000 is Realized ExchangeGain. sitaa While dealing with the ForeignDebtors,company faces either Farex Gain / Forex Loss due to Conversion of fone currency to anothercurrency. (ROANDR oo cocoa - We can get the Currency Conderiot fates from www.onada com website which s RBl recognized. We can get the historical Camedyiatesaistromthatlebshe —_Carreney Convene Hedging is done by Businessmen in order tO osc shine avoid hugelosses. ars 100 In Foreign Trades, there are two cases- 1) Realized Exchange Gain 2) Unrealized ExchangeGain, Realized Exchange Gain ~ Suppose, Mr. A sells goods ta Mr, B (USA based Company) on 1a for 1 month credit of worth $1000 @ Rs. 70.50/$ 50 the total Value goods Sold Rs. 70,500. On 1 Feb Me. A receives $1000 @ Rs. 7150/$ 50 the total amount received is Rs72,500. Excess Rs 1000 is Realized Exchange Gain. Unrealized Exchange Gain - Suppose, Mr. A sells goods to Mr. B (USA based Company) on 1* Mar for 4 month credit of worth $1000 @ Rs. 70.50/$ so the total value goods Sold Rs. 70,500. On 31" Mar (Year Closing) Currency Convertor shows the rate as Rs.72.50/5 so at the time of year closing we have to record the amount 2s per date hence $1000 @ Rs. 72.50/S so the total amount receivable is Re. 72,500. Excess Re. 2,000 is Unrealized ExchangeGain. entry Dr. @ Under Groups Sslesttry1 1 tnioR-7050/8) Mr. 8 Afe.-OF 70,500 ‘Sundry Debtors ToSsales Ae 70500 | Sales A/c (Being Goods sold for $1,000 @ Rs. 70.50/$ for 1 Month Creait) Aount Received OL1Feb)KR-7L50/ Bank A/e..Dr. 71,500) Bank Aceounts TeMr BALE 70500 | Sundry Debtors To Forex Gain/Loss Ale L000 Indirect Expenses (Being amount received $1,000 @ Rs-71.50/8)Unrealized Exchange Gain The amount Rs. 1,000 is Unrealized ExchangeGain Eatry Fs &. Under Groupe ‘ales JER7050/9) Mr. B Afe.-Dr 70,500 Sundry Debtors Te Sales Ale 70,500 | Sales Ale ( Entryatthetiment alos {Ot 31° MarJ(R=T2.50/5) ing Goods sold for $1,000 @ Rs. 70.50/ for 1 Month Credit) Mr. B Afe._.Dr. 2,000 Bank Accounts Te Unrealized Forex Gain/Loss Aji 2,000 Sundry Debtors (Being Unrealized Forex Gain is recorded dated as on 31* Mar. for $1,000 @ Rs.2/S) Cash Balance To discourage cash payments for expenditure, section 408(3) have been amended with effect from the assessment year 2018-19 as follows: Payment made toa person in @ day should not exceed Rs. 10,000/- (Rs. 35,000/- in the case of payment for plying, hiring or leasing of goods carriage) Cash Book Balance should not be negative {i.e Credit bal.) on any single day during the year. +) To check Daily Breakup of Cash: Cash Monthly Summary Entries - F6 To check Highest & Lowest Balance of Cash : From Dally Breakup Screen, Press F12 & Enable “Show High/Low Details? Yes" zener 30.00 sto Grand Tort 7510.00 enes.00 astciyel EERE DFE 0 TW ghest Ted Eat aH, Fae ie 25,000.00, areca 2att.00 or eae Fie 01g, 1S isos) Ea OS, Basrce 36,000.00 4500.08 28.00 cr| Cash Acceptance limit per debtor against a transaction is uptoRs. 2,00,000is allowed.Bank Balance +All Suspenco's Entrios must be cleared (1 Step to Start Finalization) + Bank Batance as per Bank Book & Bank Statement must so same balance + Bank interest & Bank Charges must be verified + Bank Reconciliation must be done & un-cleared entries at the end ofthe year which are yet to clear ‘theirclearance date must be written in narration and capy of must be handy + Contra entries must be verified TDS deduction done by debtors must be reconciled in finalization proce: Entries: Sales Entry: Zincom Afc..... Dr 1,00,000 To Professional Fees A/c 1,00,000 Receipt Entry: Bank A/c... Dr 90,000 ‘TDS Receivable(AY 20-21) A/c.Dr 10,000 To Zincom A/c 41,00,000 GpTDs TRACES ‘GeniakedPessangCal | TO Racncation Ansa and Coreen Erbil Sy Form 2648 Sina soem Sc aDeferred Tax Liobility (DTL) or Deferred Tax Asset (DTA) Deferred Tax Liability (DTL) or Deferred Tax Asset (OTAJ item forms an important part of your Financial ‘Statements. This adjustment made at year-end closing of Books of Accounts affects the Income-tax outgo cof your Business For that year as well asthe years ahead. Certain items which are specifically allowed & the book profit & taxable profits deferred tax lowed for tax purpose. This tax difference between, Eee ee aa 1 |Bookprofit higher than | Pay less tax now| Pay more taxin Creates Deferred the Taxable profit Future Tax Liability (OTL) 2 | Bookprofitis tessthan | Paymoretax | Pay tess tax in future | Creates Deferred {the Taxable profit now Tax Asset (DTA) Common check points for expense: + Periodic Expenses ( Entries for each months ) + Propaid & Provision effect ‘+ Business related expenses (weather any personal expense) + TDS Duly deducted on expenses + Vouchers of expense must be arranged ‘+ Membership&subscription-MustbeBusinessRelated. ‘+ Advertisement-TDS must be Deducted. Paper Adv{ 1%, Other than Paper{0%) ‘+ Audit Fees- Provision to be made in Mafch after discussing the amount from Auditors. ‘+ Bank Charges-Bank Charges Amounts to check whether reflected correctly or nat. ‘© Bank interest-Cross Verify the interest Amount. ‘+ Bonus Statf-Provision to be made as per the amount decided by the Management. ‘© Brochures~ Must be Business related + Car Fuel Exp-Verify whether Car i shown under Fixed Assets then only Car & Fut expense are eligible. ‘+ Glient Entertainment~ dusiness Promotion ‘+ Commission Check whether TDS applied properly. ‘© Computer Consumables-It includes Parts of Computers, also verify the GST application. Verify whether parts of computers aré not shown under FixedAssets. ‘+ Courier Charges-if Courier charges are incurred on Contractual Basis then verify whether TDS applied or not* Electricity-Provision to be made at the end of the year. + Gratuity-Generally, the companies provide Gratuity to the employees who have worked for more than 5 years. House Keeping Service-If House Keeping services are contractual basis then verify the application of TDs. ‘+ Insurance- Check the effect of Prepaid Insurance applie. ‘* Labour Charges-if Labour charges are on Contractual basis then verify the TDS Applied or not. ‘+ Legal Expense-Verify the GST paid on RCM bass. 1+ Mobile Exp - Mobile exp are incurred on the mobiles used by the Company's Employees. {fCompanybuys the mobile phones for the employees’ professional usage then mobile phones must be under Company's name in order to clsimGST}, ‘Printing & Stationary ~ If Printing & Stationary are incurred on Contractual basis then TDS will be applicable. When the Company is getting the Logo Printed on Stationary items then too TDS will be applicable. ‘+ Professional Fees-10s will be applicable. ‘+ Professional Tax-Professional Tax is paid in the month of June that to beginning of the Financial Year Le. in advance. ‘+ Travelling Exp- Must be Company related. ‘+ Website Exp-These are Website Maintenance Expense Income-tax rates applicable in case of domestic companies for ‘Assessment year 2020-21 and 2021-22 are as follows: Perens Perea Cog Tee Es fp Where its ate tumaver or 25% NA jaressreccia! during the IBrevicusyear2017-18 doesnot lexceed Rs. 400 crore ls Where its tata! lurnoveror NA 25% \gross receipt during the jprevious year 2018-19 does not lexceed Rs, 400 crore \* Any other domestic company 20% 20%Remuneration to Partners Remuneration includes salary, bonus, commission Remuneration in partnership firm is allowed as a deduction if following conditions are satisfied 1. Remuneration is allowed only te working partners. 2. Remuneration must} be! authorised by partnership deed and according to the terms of partnership deed. Also the amount of salary or manner of its computation is to be mentioned in. the deed. If there is not any such provision in deed then no deduction is allowed. Normally people mentions in dead that salary is allowed to partners as per maximum limit defined under this section. This clause satisfies the condition for quantum of deduction, 3. Ie should be related to the period of the partnership deed. If there is another partnership deed for another period then such deed's provisions will be considered for that period. It is not allowed if tars paid on presumptive basis under section #440 er section 44ADA. Remuneration should be within the permissible its as mentioned below. Please note that this, limits for total salary to al partners and nat per partner. Book Prof ‘Amount deductible as remuneration under section 40(b) book profit is negative Rs. 4,50,000 Ifbook profitis positive-- On first Rs_1,50,000 er 9086 of book profit whichever is more Rs. 3lakh of book profit On the 605 of book profit balance of book profit Example- Book Profit is Rs|9 Lakhs ‘Maximum allowed salary = 3,00,000"90% + 6 00,000"60%% = Rs. 6.3 fakhs Remuneration which is allowed as expenses in the hands of partnership firm will be taxable in the hands of receiving partner as “Income from Business or Profession” [If such remuneration isnot allowed as expence in hands of partnership firm than it will not be taxable in the hands of partners(b) Building (other than factory buildings) other than RCC Frame Structure (c)_| Factory bui {@)_ Fences, wells, tube wells (e)__ Other (including temporary structure, etc.) il Bridges, culverts, bunkers, etc. [NESD] Ml__| Roads [NESD] 2) | Carpeted Roads i) | Carpeted Roads ~RCC (i)__| Carpeted Roads— other th {b) | Non-carpeted roads ( Plant and Machinery —— ‘General rate applicable to Plant and Machinery not covered under Special Plant ‘and Machinery e0vears 30Years 70° Years (5 [Yeas a |Vears 158% | 4.87% 317% 9.50% 317% 9.50% 19.00% | 45.07% 31.67% 63.16% 3.17% 9.50% [250% | 25.89% | 19.00% | 45.07% 31.67% | 63.16% (a) | Plant and Machinery other than continuous process plant not covered under specific industries [NESD] (©) | continuous process plant for which no special rate has been prescribed under below [NESD] 15 Years 8 Years 639% 18.10% 11.88% | 31.23% ‘Special Plant and Machinery {o) | Plant and Machinery raat to | production and exten of Motion | Picture Films "A Cinematograph films—Machinery used in the production and exhibition of cinematograph films, recording and reproducing equipments, developing ‘machines, printing machines, editing | machines, synchronizers and studio lights except bulbs 2 Projecting equipment for exhibition of fms (8) | Plant and Machinery used in glase manufacturing 11 Piancand Machinery except direct | ie glase metung furnaces — | Recuperative and regenerative glass | melting furnaces 13 Years 13 Yeas 13 Years 731% | 2058% 731% -2058% 731% | 2058%2. Plant and Machinery except direct | BVears | 11.88% | 31.23% fire glass melting furnaces Moulds @ | quarries=Portable underground machinery and earth moving | machinery used in open cast mining | INESD] (a) Plant and Machinery use Telecommunications [NESD] [1 Towers is years [5.28% | 15.33% | 2 Telecom transceivers, switching 1s Years |7.31% 20.58% centres, transmission and other network equipment | 43. Telecom — Ducts, Cables and,opticaly| 18Years | 5.28% | 15.33% fibre a satan [TT [ie ves [S2am% 535% (e) | Plant and Machinery use: exploration, production and refining cit and gas [NESD] 1 Refineries 25 Years [3.80% | 11.29% 2. Oiland gas assets (including wells), | 25Years | 9.80% | 11.29% processing plant and facilities - 43. Petrochemical Plant 25 Yeers 3.80% 11.29% 4. Storage tanks andrelated equipment |25 Years | 3.80% | 11.29% 5. Pipelines 30Years | 3.17% | 9.50% (6. Drilling Rig [30Years, | 3.17% | 950% | 7. Field operations (above ground) BYears 11.88% 31.23% | Portable boilers, driling tools, well- head tanks, et. BYears | 11.88% 31.23% wf generation, transmission and distribution of power [NESD] "1 Thermal/ Gas/ Combined Cycte qovears [238% | 722% | Power Generation Plant ro Power [aovears [238% | 7.22% |3.Nuclear Power Generation Plant | 40Vears | 2.38% | 7.22% 4 Transmission lines, cablesand other | 40Years | 2.38% | 7.22% v neration Pi em 6. Electric Distribution Plant 271% 820% 17. Storege and Distribution Plant 317% 950% 8. Water Distribution Piant including 3.7% 9.50% pipelines’ (a) | Plant and Machinery use | manufacture of stee!1 Sinter Pant zoYears [475% [13.91% 2. Blast Furnace |20Years | 13.91% 3. Coke Ovens 20 Years 13.81% 4. Rolling mill in steel plant 20 Years 13.91% Basic oxygen Furnace Converter | 25 Years 11.29% (th) | Plant and Machinery used in +2. Bauxite crushing and grinding section | 40 Years | 2.28% | 7.22% INESD} _ |S. Digester Section [NESD] "5. Equipments tor Calcination [NESD] | 6. Copper Smelter [NESD] 7. Roll Grinder 3 Pat a ing Furnace 10. Rolling Mills | 30 Years /1L Equipments for Scalping, Slitting, | 30 Years sete. (NESD] /12. Surface Miner, Ripper Dozer,etc, | 25Vears | 3.80% | 11.29% used in mines | 1113. Copper refining plant [NESD] 2sVears | 3.80% | 1125% ( Plantand Machinery used in medical | and surgical operations [NESD] 1. Electrical Machinery, X-ray and | 13Years [7.31% | 2058% clectrotherepeutic apparatus and | ‘accessories thereto, medical, diagnostic \ “equipments, namely, Ca-scan, | Ultrasound Machines, ECG Monitors, Equip! "15 Years W) _ Plantand Machinery usedin manufacture of pharmaceuticals and ‘chemicals {NESD] 2OYears [4.75% | 1391% tc 20Vears | 475% | 13.91% “3 Drying equipments/Centrifuges and | 20Years | 4.75% | 1391% Decanters | 4. Vessel/storage tanks 20 Years (®)_ Plantand Machinery used in civil construction aa} t | Concreting, Crushing, Piling ‘dzYeats \) 7.92% | 22.09% | Equipments and Road Making: ‘Equipments [2 Heavy ft Eabipments— | “Granes with capacity of more than 100 | 20Years | 4.75% | 1391%[ tons [5.33% INESD] -Cranes with capacity oFless than 100 | 15 Years 18.10% “tons ig | 3-Transmision ine, Tunneling iWYears\ /$.50% | 25.89% ments {NESD] I |4. Earth-moving equipments SYears | 10.56% 28.31% |S. Others including Material Handling | 12 Years | 7.92% 22.09% o is Vears [633% 18.10% (| General furnitur (a) | Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries; welfare centres; meeting halls, cinema houses; theatres and circuses; and furniture and fittings let out on hire for use’on the occasion of marriages and similar 11-88% 31.23% functions. Vi. Motor Vehicles {NESD) 1_| Motor cooters and other mopeds | 2 | Motor buses, motor lorries, motor cars and 15.83% 39.30% ‘motor taxies used in a business of running them on hire 3 Motor buses, motor lorries and motor cars @Vears. | 11.88% 31.23% other than those used in 2 business of running them on hire { 4 | Motor tractors, harvesting combines and BYears) \ | 11.88% 31.23% heavy vehicles —[ 5 Electrically operated vehicies including BYears [11.88% 31.23% battery powered or fuel cell powered vehicies: vi Ships [NESD] —— in-going shi | K++} (Bulk Carriers and liner vessels [25 Years [5.80% [11.29% Crude tankers, product carriersand 20 Years |4.75% 13.91% ‘easy chemical carriers with or without conventional tank coatings. {ii_| Chemicals and Acid Carriers: (a) With Stainless steel tanks |25Years | 3.80% | 11.29% ‘With other tanks 20Years | 4.75% 1 1 passenger for ships or boats ified gas carriers 30 Years) | [3.17% — 8.50% Conventional large passenger vessels ||| 30 Years | 3.17% 8.50% Which are used for cruise purpose also | I 30Years [3.17% 9.50% | [2oveos [475% 13.91% 20Years | 4.75% 13.91%[25Yeers [3.00% [11.29% [sstee Fess 18.10% 679% 19.26% | and other similar ships used mainly for | dredging purposes VEEL aia operating on Figod waters [as Years [731% | x Other vessels | fears | 3.39% rafts or Helicopters [NESD] 2OYears | 475% | 13.91% sidings, lacomotives, rolling stocks, 15 Years tq 18.10% 0.58% ‘tramways and railways used by concerns, 6. 18.10% SYears | 19.00% | 45.07% | Computers and data processing di | | (0_| Servers and networks. | 6Years | 15.83% 39.30% (i) | End userdevices, such as, desktops, laptops, 3 Years | 31.67% | 63.16% = pr _| Xill,_| Laboratory equipment [NESD] | | ! “(General iaboretory equipment OYears | 850% | 25.89% (i) | Laboratory equipments used in educational | 5 Years pea 45.07% institutions XIV. | Electrical Installations and Equipment[NESD] | 10 years | 5.50% 25.89% XV. | Hydraulic works, pipelines and sluices [NESD] ___| 15 Years tebe 18.10% some Tax Act, 1961Pees ee See rane anes Pree ae) to toAY onwards beater) 1 2 3 4 PARTA TANGIBLE ASSETS |. BUILDING [See Notes 1 to 4 below the Table] (1) Buildings which are used mainly for 5 5 5 residential purposes except hotels’ and boarding houses (2) Buildings other than those used mainly 10 | 10 40 for residential purposes and not covered by sub-items (1) above end {3) below (3) Buildings acquired on or after the Ist day oo | 100 | 40 of September, 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 infra. structure facilities under clause-(i) of ‘sub-section (4) of section 80.14 (4) Purely temporary erections such as too | 100 | 40 ‘wooden structures FURNITURE AND FITTINGS Furniture and fittings including electrical fitings 1s | 10 10 [See Note 5 below the Table] MACHINERY AND PLANT (2) Machinery and plant other than those wel 1s as covered by sub-items (2), (3) and (8) below : [See Note 5A below the Table] (2) (i) Motor cars, other than’ those used ina zo | as a5 business of running them on hire, ‘acquired or put to use on or after the Ist day of April, 1990 except those covered(ii) Motor cars, other than those Used i business of running them= on hire, acquited (on ‘or after the 23rd day of ‘August, 2019 but before the ist dey of April, 2020 and is put to use before the Ast day of April, 2020. 8) Aeroplanes ~ Aeroeny (i) (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, acquited 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. Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the Ist day of April, 1999 and is put to use for ‘any period before the Ist day of Aprit, 1999 for the purposes of business or profession in accordance with the thi proviso to clause (ii) of sub-section {1} of section _32 [See Note6 below the Table] (iv) New commercial vehicle which is acquired on or after the Ist day of October, 1998, but before the Ist day of April, 1999 jin replacement of condemned vehicle of over 15 years of ‘age and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section £32 [See Note 6 below the Table] (v) New commertial vehicle which is acquired on or after the Ast day of April, & 40 60 3 30 40 30 45 40 401999 but before the Ist day of April, 2000 in replacement of condemned Vehicle of over 15 years of age and is put to use before the Ist day of April, 2000 for the purposes of business or profession in accordance with the) second proviso to clause ({i).of sub- section (1) of section 32[See Note 6 below the Table] (vi) New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the Ist day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession [See Note 6 below the Table] (via) New commercial vehide which’ is acquired on or ‘after-the Ist day of January, 2009 but before the Ist day of October, 2009 and is put to use before the Ist day of October, 2009 for the purposes of business or profession [See paragraph 6 of the Notes below this Table] (vil) Moulds used in rubber and plastic goods factories (viii) Air pollution control equipment, being— {a) Electrostatic precipitation systems () Felt-flter systems (6) Dust collector systems (¢) Scrubber-counter current/venturi/packed bed cyclonic scrubbers {e) Ash handling system and evacuation system (ix) Water pollution control equipment, being— (0) Mechanical screen systems | 100 100 40 30 40{b) Aerated detritus chambers {including air compressor) {@) Mechanically skimmed _oit- and grease removel systemis {@) (Chemical. tea ‘systems and flash mixing equipment {e) Mechanical flocculators and mechanical reactors {f) Dittused air/mechanically aerated activated sludge systems {g) Aerated lagoon systems {h) Biofiters (i) Methane-recovery anaerobic digester systems {) Air floatation systems {k) Air/steam stripping systems 0) Urea Hydrolysis systems (m) Marine outfall systems (0) Centrifuge for dewatering siudge (0) Rotating biological contractor. or bio-disc {p) ton exchange resin column. (q) Activated carbon column (x) (a) Solidwaste control equipments being ‘caustic/lime/chrome/mineralferyol ite recovery systems {b) Solidwaste recycling and resource: recovery systems 0 40(xi) Machinery and plant, used in semi- conductor industry covering all integrated circuits (ICs) (excluding hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration/very _ large scale integration (L31/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entries (vii), (ix) and (x) of this sub-item and sub.item (8) below (xia) Life saving medical equipment, bi {2) D.C. Defibrillators for internal use and pace makers {b) Haemodialysors {c) Heart lung machine {6 Cobatt Therapy Unit {e) Colour Doppler (9) SPECT Gamms Camera {g) Vescular Angiography System including Digital subtraction Angiography {h) Ventilator used with enaesthesia apparatus (i) Magnetic Resonance Imaging System i) Surgical Laser [See Note 5B] {k) Ventilators other than those used with anaesthesia (1) Gamma knite {m) Bone = Marrow Transplant Equipment including sitastic tong standing intravenous catheters for chemotherapy 0 30 40feoptic endoscopes including Paediatricresectoscope/ audit resectoscope, _Peritoneoscopes, Arthoscope, _Microlaryngoscope, Fibreoptic Flexible Nasal Pharyngo Bronchoscope, ‘Fibreoptic Flexible Laryngs Bronchoscope, Video Laryngo Bronchoscope and Video OesophagoGastroscope, Stroboscope, Fibreoptic Flexible esophagoGastroscope (0) Laparoscope (single incision) (4) Containers made of glass or plastic used as re-fills (5) Computers including computer software [See note 7 below the Table] (6) Machinery and plant, used in weaving, processing and gatment sector of textile industry, which is purchased under TUFS on or after the Ist day of April, 2001 but before the ist day of April, 2004 and is put to use before the Ist day of April 2004 [See Note 8 below the Table] (7) Machinery and plant, acquired and installed on or after the Ist day of September, 2002 in a water supply project or a water treatment system and which is put to use for the purpase of business of provi infrastructure facility under clause (i) of sub-section (4) ofsection SOA [See Notes 4 and 9 below the Table] (8) (i) Wooden parts used in artificial ‘manufacturing machinery -matograph films ~ bulbs of stu lights: Match factories - Wooden match frames (Gv) Mines and quarries : (a) Tubs, winding ropes;/haulage ropes and sand stowing pipes 50 100 100 100 100 100 100 100 100 100 40 40 40 40{b) Safety lamps (uv) Salt works - Salt pans, reservoirs and condensers, etc., made of earthy, sandy or clayey material or any other similar material (vi) Flour mils - Rollers (vii) Iron and steel industry - Rolling mill rolls (will) Sugar works - Rollers (ix) Energy saving devices, being— A. Specialised boilers and furnaces: (2) (gniftuid/Atuidized bed boilers (b) Flameless furnaces and continuous pusher type furnaces (0) Fluidized bed type heat ‘treatment furnaces (@) High efficiency boilers (thermal efficiency higher than 75 per cent in case of coal fired and 80 per cent in case of oil/gas Fired boilers) B.Instrumentation and _ monitoring system for, monitoring ~ energy flows: (2) Automatic electrical toad monitoring systems (b) Digital heat loss meters {c) Micro-processor based contro! systems (d) Infra-red thermography {e) Meters for measuring, neat losses, Furnace. oil flow, steam flow, jelectrie energy and Power factor meters 100 100 40 40 40 40(f) Maximum demand indicator ‘and clamp on power meters {g) Exhaust gases analyser {h) Fuel oil purnp test bench C. Waste heat recovery equipment: (a) Economisers and teed water heaters {b) Recuperators and air pre heaters {c) Heat pumps {d) Thermatenergy wheel for high ‘and low temperature waste heat recovery D. Cogeneration systems: {e) Back pressure pass out, controlled extraction, extraction-cum-condensing ‘turbines for co-generation along with pressure boilers {b) Vapour absorption refrigeration systems {c) Orgenic rankine”cycle| power systems {d) Low inlet pressure small steam turbines E, Electrical equipment: fe) Shunt capacitors and synchronous ‘condenser systems (b) Automatic power cut off devices {releys) mounted on individual motors {e) Automatic voltage controller {d) Power factor controtler for AC motors 0(e} Solid state devices for controlling motor speeds (1) Thermatly —_ energy-efficient stenters (which require 800 or less kilocalories of heat to evaporate one, kilogram of ‘water) (g) Series ‘compensation equipment (h) Flexible AC Transmission (FACT) devices - Thyristor controlled se compensation equipment (i) Time of Day (ToD) energy meters (i) Equipment to esta ‘transmission highways for National Power Grid to facilitate transfer of surplus power of one region to the deficient region (k) Remote terminal units/intelligent —_ electronic devices, computer hardware/software, router/bridges, other required equipment and. associated communication systems for supervisory control and data acquisition systems, energy management systems and distribution _ management systems for power ‘transmission systems (0) Special energy meters for Availability Based Tariff (ABT) F.Bumers: (a) 0 to 10 per cent excess air bumers (b) Emulsion burners 40 40(c) Burners using air with high pre- heat temperature (above 300°C) G. Other equipment: (a), Wet air oxidation equipment for recovery of chemicals and heat (b) Mechanica vapourrecompressors: (c) Thin film evaporators (qd) Automatic micro-processor based load demand controllers (e) Coal based producer gas plants (f) Fluid drives and fuid couplings {e) Turbo charges/super-charges (h) Sealed radiation sources for radiation processing plants (x) Gas cylinders including valves and regulators (x) Glass manufacturing concems - Direct fire glass melting furnaces (i) Mineral oit concerns: (a) Plant used in-field operations (ebove ground) distribution - Returnable packages (b) Plant used in field operations (below ground), but not cluding kerbside pumps including underground tanks end fittings used in field operations (distribution) by mineral oil concerns (c} Oil wells not covered in clauses (2) and (b) (with effect from, ‘the assessment year 2016-17). Renewal energy devices being— 15 40 40 40 15(a) Flat plate solar collectors (b) Concentrating and pipe type solar collectors (c) Solar cookers (a) Solar water heaters and systems (€) Air/gas/fuid heating systems (f} Soler crop driers and systems (e) Soler refrigeration, cold storages and air-conditioning systems (h) Solar steels and) desalination systems ( Solar’ “power generating systems (i) Solar pumps. based on solar- thermal and——solar- photovoltaic conversion (k) Solar-photovoltaic modules and panels for water pumping and other applications () Windmills end any specialty designed devices which run on wind-mills installed on” or before March 31; 2012 (m) Any special devices including electric generators and pumps running on wind energy installed on or before March 31, 2012 (n) Biogas plant and biogas engines (o) Electrically operated vehicles including battery powered or fuel-cell powered vehicles (p) Agricutturat and) municipal waste conversion. ~ devices 40producing energy (a) Equipment for utiising ocean waste and thermal energy () Machinery and plant used in the manufacture of any of the ‘above sub-items {9) (i) Books owned by assessees carrying on ‘aprofession— (2) Books, being annual Publications (b) Books, other than those covered by entry (a) above’ i) Books owned by assesses carrying ‘on business in running lending libraries IV. SHIPS (2) Ocean-going ships including dredgers, ‘tugs, barges, survey launches and other similar ships used mainly for dredging purposes and fishing vessels with ‘wooden hull (2) Vessels ordinarily operating on inland waters, not covered by sub-item (3) below (3) Vessels ordinarily operating ‘on intend ‘waters being speed boats {See Note 10 below the Table} PART B INTANGIBLE ASSETS know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature 100 100 25. 25, 3 5 100 100 20 20 20 25 40 40 40 20 20 20 25 ‘Thank You