Useful lives under Schedule II, Companies Act, 2013
The full Part C table of useful lives for depreciation in a company's books, with the indicative straight-line and written-down-value rates, whether extra shift depreciation is allowed, and the notes to Part C in plain words.
Last reviewed 7 November 2026. Source: Schedule II to the Companies Act, 2013 (section 123), Part C, as amended by the notifications of 31 March 2014 and 29 August 2014. This page is for quick reference; read the Schedule itself before relying on it.
How Schedule II works
- It is a Companies Act rule. Section 123 of the Companies Act, 2013 requires depreciation to be provided as set out in Schedule II. It applies to companies' books of account, whether they follow the Accounting Standards or Ind AS.
- Part A: the principle. Depreciation is the systematic allocation of the depreciable amount (cost less residual value) of an asset over its useful life. The residual value is normally not more than 5% of the original cost. A company may use a different useful life or residual value, but it must disclose the difference in its financial statements with a justification supported by technical advice.
- Part B: regulated businesses. Where a regulatory authority set up under an Act of Parliament, or the Central Government, notifies the useful life or residual value of an asset for accounting purposes (for example, electricity tariff regulations), that life or value applies instead of Part C.
- Part C: the table below. The useful lives of tangible assets. Intangible assets follow the Accounting Standards (AS 26 or Ind AS 38), not this table.
- Ind AS 16 does not set useful lives. Under Ind AS 16 (and AS 10), the company estimates each asset's useful life, residual value and depreciation method, and reviews them; Schedule II Part C is the benchmark, and any departure from it is disclosed and justified as Part A requires.
- Income-tax depreciation is separate. Tax depreciation uses block rates under the Income-tax Act; see the income-tax depreciation rates.
Part C: useful lives of tangible assets
"Extra shift" shows whether the asset can be depreciated more for double or triple shift working (Note 6). Assets marked NESD in the Schedule ("no extra shift depreciation") cannot. The rates are worked out from the useful life with a residual value of 5% of cost, and are indicative only: a company using a different residual value gets different rates.
| Item | Asset | Useful life (years) | Extra shift | SLM rate | WDV rate |
|---|---|---|---|---|---|
| I. BuildingsFactory buildings do not include offices, godowns or staff quarters (Note 1). | |||||
| I(a) | Buildings (other than factory buildings) with RCC frame structure | 60 | No (NESD) | 1.58% | 4.87% |
| I(b) | Buildings (other than factory buildings) other than RCC frame structure | 30 | No (NESD) | 3.17% | 9.50% |
| I(c) | Factory buildings | 30 | No (NESD) | 3.17% | 9.50% |
| I(d) | Fences, wells, tube wells | 5 | No (NESD) | 19.00% | 45.07% |
| I(e) | Others, including temporary structures | 3 | No (NESD) | 31.67% | 63.16% |
| II. Bridges, culverts, bunders, etc. | |||||
| II | Bridges, culverts, bunders, etc. | 30 | No (NESD) | 3.17% | 9.50% |
| III. Roads | |||||
| III(a)(i) | Carpeted roads: RCC | 10 | No (NESD) | 9.50% | 25.89% |
| III(a)(ii) | Carpeted roads: other than RCC | 5 | No (NESD) | 19.00% | 45.07% |
| III(b) | Non-carpeted roads | 3 | No (NESD) | 31.67% | 63.16% |
| IV(i). Plant and machinery: generalA continuous process plant is one required and designed to operate 24 hours a day (Note 8). Its life was raised from 8 to 25 years by the notification of 31 March 2014. | |||||
| IV(i)(a) | Plant and machinery other than continuous process plant, not covered under specific industries | 15 | Yes | 6.33% | 18.10% |
| IV(i)(b) | Continuous process plant for which no special rate is prescribed under IV(ii) | 25 | No (NESD) | 3.80% | 11.29% |
| IV(ii)(a). Special plant and machinery: production and exhibition of motion picture films | |||||
| IV(ii)(a)1 | Cinematograph films: machinery used in production and exhibition, recording and reproducing equipment, developing, printing and editing machines, synchronisers and studio lights except bulbs | 13 | Yes | 7.31% | 20.58% |
| IV(ii)(a)2 | Projecting equipment for exhibition of films | 13 | Yes | 7.31% | 20.58% |
| IV(ii)(b). Special plant and machinery: glass manufacturing | |||||
| IV(ii)(b)1 | Plant and machinery except direct fire glass melting furnaces: recuperative and regenerative glass melting furnaces | 13 | Yes | 7.31% | 20.58% |
| IV(ii)(b)2 | Plant and machinery except direct fire glass melting furnaces: moulds | 8 | No (NESD) | 11.88% | 31.23% |
| IV(ii)(b)3 | Float glass melting furnaces | 10 | No (NESD) | 9.50% | 25.89% |
| IV(ii)(c). Special plant and machinery: mines and quarries | |||||
| IV(ii)(c) | Portable underground machinery and earth-moving machinery used in open cast mining | 8 | No (NESD) | 11.88% | 31.23% |
| IV(ii)(d). Special plant and machinery: telecommunications | |||||
| IV(ii)(d)1 | Towers | 18 | No (NESD) | 5.28% | 15.33% |
| IV(ii)(d)2 | Telecom transceivers, switching centres, transmission and other network equipment | 13 | No (NESD) | 7.31% | 20.58% |
| IV(ii)(d)3 | Telecom ducts, cables and optical fibre | 18 | No (NESD) | 5.28% | 15.33% |
| IV(ii)(d)4 | Satellites | 18 | No (NESD) | 5.28% | 15.33% |
| IV(ii)(e). Special plant and machinery: exploration, production and refining of oil and gas | |||||
| IV(ii)(e)1 | Refineries | 25 | No (NESD) | 3.80% | 11.29% |
| IV(ii)(e)2 | Oil and gas assets (including wells), processing plant and facilities | 25 | No (NESD) | 3.80% | 11.29% |
| IV(ii)(e)3 | Petrochemical plant | 25 | No (NESD) | 3.80% | 11.29% |
| IV(ii)(e)4 | Storage tanks and related equipment | 25 | No (NESD) | 3.80% | 11.29% |
| IV(ii)(e)5 | Pipelines | 30 | No (NESD) | 3.17% | 9.50% |
| IV(ii)(e)6 | Drilling rig | 30 | No (NESD) | 3.17% | 9.50% |
| IV(ii)(e)7 | Field operations (above ground): portable boilers, drilling tools, well-head tanks, etc. | 8 | No (NESD) | 11.88% | 31.23% |
| IV(ii)(e)8 | Loggers | 8 | No (NESD) | 11.88% | 31.23% |
| IV(ii)(f). Special plant and machinery: generation, transmission and distribution of power | |||||
| IV(ii)(f)1 | Thermal, gas and combined cycle power generation plant | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(f)2 | Hydro power generation plant | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(f)3 | Nuclear power generation plant | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(f)4 | Transmission lines, cables and other network assets | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(f)5 | Wind power generation plant | 22 | No (NESD) | 4.32% | 12.73% |
| IV(ii)(f)6 | Electric distribution plant | 35 | No (NESD) | 2.71% | 8.20% |
| IV(ii)(f)7 | Gas storage and distribution plant | 30 | No (NESD) | 3.17% | 9.50% |
| IV(ii)(f)8 | Water distribution plant, including pipelines | 30 | No (NESD) | 3.17% | 9.50% |
| IV(ii)(g). Special plant and machinery: manufacture of steel | |||||
| IV(ii)(g)1 | Sinter plant | 20 | Yes | 4.75% | 13.91% |
| IV(ii)(g)2 | Blast furnace | 20 | Yes | 4.75% | 13.91% |
| IV(ii)(g)3 | Coke ovens | 20 | Yes | 4.75% | 13.91% |
| IV(ii)(g)4 | Rolling mill in steel plant | 20 | Yes | 4.75% | 13.91% |
| IV(ii)(g)5 | Basic oxygen furnace converter | 25 | Yes | 3.80% | 11.29% |
| IV(ii)(h). Special plant and machinery: manufacture of non-ferrous metals | |||||
| IV(ii)(h)1 | Metal pot line | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(h)2 | Bauxite crushing and grinding section | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(h)3 | Digester section | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(h)4 | Turbine | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(h)5 | Equipment for calcination | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(h)6 | Copper smelter | 40 | No (NESD) | 2.38% | 7.22% |
| IV(ii)(h)7 | Roll grinder | 40 | Yes | 2.38% | 7.22% |
| IV(ii)(h)8 | Soaking pit | 30 | Yes | 3.17% | 9.50% |
| IV(ii)(h)9 | Annealing furnace | 30 | Yes | 3.17% | 9.50% |
| IV(ii)(h)10 | Rolling mills | 30 | Yes | 3.17% | 9.50% |
| IV(ii)(h)11 | Equipment for scalping, slitting, etc. | 30 | No (NESD) | 3.17% | 9.50% |
| IV(ii)(h)12 | Surface miner, ripper dozer, etc., used in mines | 25 | Yes | 3.80% | 11.29% |
| IV(ii)(h)13 | Copper refining plant | 25 | No (NESD) | 3.80% | 11.29% |
| IV(ii)(i). Special plant and machinery: medical and surgical operations | |||||
| IV(ii)(i)1 | Electrical machinery, X-ray and electrotherapeutic apparatus and accessories, medical diagnostic equipment such as CAT scan, ultrasound machines, ECG monitors | 13 | No (NESD) | 7.31% | 20.58% |
| IV(ii)(i)2 | Other equipment | 15 | No (NESD) | 6.33% | 18.10% |
| IV(ii)(j). Special plant and machinery: manufacture of pharmaceuticals and chemicals | |||||
| IV(ii)(j)1 | Reactors | 20 | No (NESD) | 4.75% | 13.91% |
| IV(ii)(j)2 | Distillation columns | 20 | No (NESD) | 4.75% | 13.91% |
| IV(ii)(j)3 | Drying equipment, centrifuges and decanters | 20 | No (NESD) | 4.75% | 13.91% |
| IV(ii)(j)4 | Vessels and storage tanks | 20 | No (NESD) | 4.75% | 13.91% |
| IV(ii)(k). Special plant and machinery: civil construction | |||||
| IV(ii)(k)1 | Concreting, crushing, piling and road-making equipment | 12 | Yes | 7.92% | 22.09% |
| IV(ii)(k)2 | Heavy lift equipment: cranes with capacity of more than 100 tons | 20 | Yes | 4.75% | 13.91% |
| IV(ii)(k)2 | Heavy lift equipment: cranes with capacity of less than 100 tons | 15 | Yes | 6.33% | 18.10% |
| IV(ii)(k)3 | Transmission line and tunnelling equipment | 10 | No (NESD) | 9.50% | 25.89% |
| IV(ii)(k)4 | Earth-moving equipment | 9 | Yes | 10.56% | 28.31% |
| IV(ii)(k)5 | Others, including material handling, pipeline and welding equipment | 12 | No (NESD) | 7.92% | 22.09% |
| IV(ii)(l). Special plant and machinery: salt works | |||||
| IV(ii)(l) | Plant and machinery used in salt works | 15 | No (NESD) | 6.33% | 18.10% |
| V. Furniture and fittings | |||||
| V(i) | General furniture and fittings | 10 | No (NESD) | 9.50% | 25.89% |
| V(ii) | 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 marriages and similar functions | 8 | No (NESD) | 11.88% | 31.23% |
| VI. Motor vehicles | |||||
| VI(1) | Motor cycles, scooters and other mopeds | 10 | No (NESD) | 9.50% | 25.89% |
| VI(2) | Motor buses, motor lorries, motor cars and motor taxis used in a business of running them on hire | 6 | No (NESD) | 15.83% | 39.30% |
| VI(3) | Motor buses, motor lorries and motor cars other than those used in a business of running them on hire | 8 | No (NESD) | 11.88% | 31.23% |
| VI(4) | Motor tractors, harvesting combines and heavy vehicles | 8 | No (NESD) | 11.88% | 31.23% |
| VI(5) | Electrically operated vehicles, including battery-powered or fuel-cell-powered vehicles | 8 | No (NESD) | 11.88% | 31.23% |
| VII(1). Ships: ocean-going ships | |||||
| VII(1)(i) | Bulk carriers and liner vessels | 25 | No (NESD) | 3.80% | 11.29% |
| VII(1)(ii) | Crude tankers, product carriers and easy chemical carriers, with or without conventional tank coatings | 20 | No (NESD) | 4.75% | 13.91% |
| VII(1)(iii)(a) | Chemical and acid carriers with stainless steel tanks | 25 | No (NESD) | 3.80% | 11.29% |
| VII(1)(iii)(b) | Chemical and acid carriers with other tanks | 20 | No (NESD) | 4.75% | 13.91% |
| VII(1)(iv) | Liquefied gas carriers | 30 | No (NESD) | 3.17% | 9.50% |
| VII(1)(v) | Conventional large passenger vessels, also used for cruises | 30 | No (NESD) | 3.17% | 9.50% |
| VII(1)(vi) | Coastal service ships of all categories | 30 | No (NESD) | 3.17% | 9.50% |
| VII(1)(vii) | Offshore supply and support vessels | 20 | No (NESD) | 4.75% | 13.91% |
| VII(1)(viii) | Catamarans and other high-speed passenger ships or boats | 20 | No (NESD) | 4.75% | 13.91% |
| VII(1)(ix) | Drill ships | 25 | No (NESD) | 3.80% | 11.29% |
| VII(1)(x) | Hovercraft | 15 | No (NESD) | 6.33% | 18.10% |
| VII(1)(xi) | Fishing vessels with wooden hull | 10 | No (NESD) | 9.50% | 25.89% |
| VII(1)(xii) | Dredgers, tugs, barges, survey launches and similar ships used mainly for dredging | 14 | No (NESD) | 6.79% | 19.26% |
| VII(2). Ships: vessels ordinarily operating on inland waters | |||||
| VII(2)(i) | Speed boats | 13 | No (NESD) | 7.31% | 20.58% |
| VII(2)(ii) | Other vessels | 28 | No (NESD) | 3.39% | 10.15% |
| VIII. Aircraft or helicopters | |||||
| VIII | Aircraft or helicopters | 20 | No (NESD) | 4.75% | 13.91% |
| IX. Railway sidings and rolling stock | |||||
| IX | Railway sidings, locomotives, rolling stock, tramways and railways used by concerns other than railway concerns | 15 | No (NESD) | 6.33% | 18.10% |
| X. Ropeway structures | |||||
| X | Ropeway structures | 15 | No (NESD) | 6.33% | 18.10% |
| XI. Office equipment | |||||
| XI | Office equipment | 5 | No (NESD) | 19.00% | 45.07% |
| XII. Computers and data processing units | |||||
| XII(i) | Servers and networks | 6 | No (NESD) | 15.83% | 39.30% |
| XII(ii) | End-user devices, such as desktops and laptops | 3 | No (NESD) | 31.67% | 63.16% |
| XIII. Laboratory equipment | |||||
| XIII(i) | General laboratory equipment | 10 | No (NESD) | 9.50% | 25.89% |
| XIII(ii) | Laboratory equipment used in educational institutions | 5 | No (NESD) | 19.00% | 45.07% |
| XIV. Electrical installations and equipment | |||||
| XIV | Electrical installations and equipment | 10 | No (NESD) | 9.50% | 25.89% |
| XV. Hydraulic works, pipelines and sluices | |||||
| XV | Hydraulic works, pipelines and sluices | 15 | No (NESD) | 6.33% | 18.10% |
Notes to Part C, in plain words
- Factory buildings do not include offices, godowns or staff quarters. Those take the life of other buildings (60 years for an RCC frame structure, 30 years otherwise).
- Additions and disposals during the year: depreciation is pro rata, from the date of addition or up to the date the asset is sold, discarded, demolished or destroyed.
- Disclosure: the accounts must state the depreciation methods used, and the useful lives used if they differ from this Schedule.
- Component accounting: the life in Part C is for the whole asset. Where a part of the asset has a significant cost and a different useful life, that part is depreciated separately over its own life. This has been compulsory for financial years beginning on or after 1 April 2015.
- (Omitted on 31 March 2014.)
- Extra shift: the lives assume single-shift working. Unless the asset is marked NESD, depreciation for the period of double-shift working increases by 50%, and for the period of triple-shift working by 100%.
- Transition (1 April 2014): the carrying amount on that date was depreciated over the asset's remaining useful life under this Schedule; where the remaining life was nil, the carrying amount less residual value could be taken to opening retained earnings.
- Continuous process plant means a plant required and designed to operate 24 hours a day.
Worked examples
1. Addition during the year, straight-line method. A company buys a laptop for ₹90,000 on 1 October 2025 and closes its books on 31 March 2026. Useful life 3 years (XII(ii)), residual value 5% (₹4,500). Yearly depreciation = (90,000 − 4,500) ÷ 3 = ₹28,500. For the 182 days used in the year: 28,500 × 182 ÷ 365 = ₹14,211.
2. Double shift. General plant and machinery costing ₹10,00,000 (IV(i)(a), 15 years, extra shift allowed) works a double shift for 120 days of the year. Single-shift depreciation, straight-line with 5% residual value = 9,50,000 ÷ 15 = ₹63,333. Extra for double shift = 63,333 × 50% × 120 ÷ 365 = ₹10,411. Total for the year = ₹73,744. For a NESD asset, such as a motor car, there is no extra amount.
3. Different useful life. If the company's engineers assess that a machine will last 10 years rather than 15, it may use 10 years, but the notes to the accounts must state the life used and the justification, supported by technical advice.
Also see: income-tax depreciation rates · company law and LLP resources · the official text of the Companies Act.