New Delhi: Brushing aside industry's demand, the government has slashed the depreciation rate for income tax deduction on a number of items, including books and computer software, from 100 per cent to 60 per cent and on pollution control equipment to 80 per cent.

A September 27 notification amending the Income Tax Rules also made changes in the classification of buildings used as hotels and dwelling units and prescribed new depreciation rates.

A single rate of 15 per cent for depreciation of furniture and fittings as against 10 and 15 per cent, has been prescribed now, while for computers and softwares, the depreciation rate has been pegged at 60 per cent.

Substituting Appendix I to the Income Tax Rules of 1962, the notification has prescribed a rate of 80 per cent in the case of air, water and solid waste pollution control equipments, energy saving and other renewable energy devices, which are now eligible for 100 per cent depreciation.

PTI