Initial allowances for depreciation :-
One person can avail this allowance if the fulfills the
following conditions :
- Eligible Assets : This allowance is allowed only for those assets which are depreciated assets.
- Years Allowed : In respect of the following years initial allowance of depreciation is allowed.
(i). The year in which first time in the business or profession.
(ii). The year in which commercial production was produced.
- Rate : This allowance is allowed at the rate of 50% of the cost of asset (50%).
- Ownership of the Asset : This allowance is allowed if the same asset is owned by the same person.
Allowances Not Allowed :-
Initial allowance for depreciation
is not allowed in the following assets.
(i). Any furniture or fitting.
(ii). Already used machinery or
plant.
(iii). A road transport vehicle
not lying for hire.
(iv). If any asset deduction is
allowed under any other income tax ordinance.
Normal Depreciation :-
The above depreciation is
calculated at the prescribed rate for various typed of assets on the written
down value of a depreciable asset. According the following rate normal
depreciation allowed.
Class Of Assets Description Rate Of The Written Down
1. Building (general) 5%
2. Factory,
Workshop, Hotel 10%
3. Quarters for
labour 10%
4. Furniture or Fitting 10%
5. Machinery and
Plant 10%
6. Personal Computer &
Allied items 30%
7. Technical & Professional
books 20%
8. Ships 5%
9. Motor
Vehicles 20%
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