TheToolsWala ← All Tools

Depreciation Calculator

IT Act — Block-wise WDV Method (Section 32) · Companies Act — Schedule II SLM / WDV · Dual Comparison · FY 2026-27

📋 Engagement Details

📋 IT Act — Block-wise WDV
🏢 Companies Act — Schedule II
📊 Comparison

IT Act — Block-wise WDV Depreciation (Section 32)

Block / Asset Class WDV Opening (₹) Additions (₹)
During year		 Add: Half-year additions (₹)
Added after 180 days		 Less: Disposals (₹)
Sale / Transfer		 Rate (%) Depreciation (₹) WDV Closing (₹)
IT Act Rates (Appendix I):   Buildings (RCC): 10% | Buildings (Temporary): 40% | Furniture & Fittings: 10% | Plant & Machinery (General): 15% | Computers: 40% | Motor Cars: 15% | Motor Vehicles (Heavy): 30% | Intangibles: 25% | Ships: 20%
Note: 50% depreciation if asset put to use for <180 days. Additional depreciation u/s 32(1)(iia): 20% on new P&M (manufacturing).
📌 Block of assets method: Opening WDV + Full-year additions (put to use ≥180 days) - Disposals = Written Down Value. Apply rate on WDV. Half-year additions (put to use <180 days) are listed separately and get 50% of normal rate.

Companies Act — Schedule II Depreciation (SLM / WDV)

Asset Description Method Gross Block (₹) Acc. Deprn Opening (₹) Additions (₹) Deletions (₹) Useful Life (yrs) Rate (%) Depreciation (₹) WDV / Net Block (₹)
Schedule II Useful Life:   Buildings (RCC): 60 yrs | Buildings (Factory shed): 30 yrs | P&M (General): 15 yrs | Computers: 3 yrs | Furniture: 10 yrs | Motor Vehicles: 8 yrs | Office Equipment: 5 yrs | Intangibles: 10 yrs
SLM Rate = 100% ÷ Useful Life | WDV Rate per Schedule II

📊 IT Act vs Companies Act — Depreciation Comparison

Calculate depreciation in both tabs first, then view comparison here.

About This Tool

The Depreciation Calculator computes depreciation under two methods: (1) Written Down Value (WDV) as per Income Tax Act block-of-assets rules under Section 32, and (2) Straight Line Method (SLM) as per Companies Act 2013 Schedule II. It is used for computing business income, preparing tax audit reports, reconciling book versus tax depreciation, and computing terminal depreciation or short-term capital gain on block cessation.

How to Use

  1. Select method: WDV (Income Tax) or SLM (Companies Act).
  2. For IT Act depreciation: select asset category and applicable rate (Plant & Machinery 15%, Computers 40%, Buildings 5-10%).
  3. Enter opening WDV of the block, additions during the year, and deletions (asset sales).
  4. The tool applies half-rate for assets added after 3 October and computes closing WDV and depreciation.
  5. For Companies Act SLM: enter useful life and residual value to compute annual depreciation.

Frequently Asked Questions

What is the depreciation rate for computers under IT Act?

Computers and computer software are depreciated at 40% per annum on WDV. If purchased after 3 October, only 20% (half rate) is allowed in the first year of purchase.

What is a block of assets?

Under the IT Act, assets of the same class with the same depreciation rate are grouped into a "block." Depreciation is calculated on the net WDV of the whole block, not individual assets. Terminal depreciation arises when the entire block ceases to exist.

What is the difference between book depreciation and tax depreciation?

Book depreciation (Companies Act SLM based on useful life) often differs from tax depreciation (IT Act WDV at prescribed rates). The difference is a timing difference that creates deferred tax (as per AS 22/Ind AS 12).

Disclaimer: For educational & informational purposes only. This is not professional tax, legal, or financial advice. Always consult a qualified professional. TheToolsWala.com accepts no liability for decisions made based on this output.