The CBDT in their Circular No. 15/2001 dated 12.12.2001has clarified that the higher rate of depreciation is prescribed only in respect of computers and electronic items. Further the Circular reads that the electronic gadgets would mean only data storage and handling devices like computer, digital dairies and printers for their higher degree of obsolescence. Further the Circular clarifies that they do not include white goods such as washing machines, microwave ovens, mixers, hot plates, ovens, refrigerators, music systems, television etc. In such cases the value of perquisite upon transfer of such assets shall be worked out by reducing of its actual cost by reducing balance method @ 10% of cost for each completed year of use.
In our view even mobile sets would also fall in the category of electronic gadgets and therefore qualify for 50% depreciation rate. Employers are advised to relist the items in their furnishing scheme in accordance with the clarification of the Board.