Depreciation Calculator
Compare depreciation under the Companies Act, 2013 and the Income Tax Act - built for CA and CMA students.
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Asset Details (Schedule II)
Not a statutory ceiling in the Act, but 5% of cost is the near-universal market practice this defaults to.
Depreciation is charged pro-rata from this date - the first (and, if applicable, last) financial year will be a partial-year charge, not a full year.
Block of Assets (WDV)
Enter the starting calendar year - e.g. 2025 means FY 2025-26.
Each addition is automatically classified as full-rate or half-rate based on whether it was used for 180 days or more before the end of that financial year - no need to work this out yourself.
This models a single block starting from the figures above; no further additions or disposals are assumed after Year 1.
Companies Act Depreciation
Income Tax Depreciation
Value Over Time
Companies Act Depreciation Schedule
| Financial Year | Days Used | Opening Value | Depreciation | Closing Value |
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Income Tax Depreciation Schedule
| Financial Year | Opening WDV | Additions | Sale Proceeds | Depreciation | Closing WDV |
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Depreciation Basics for Students
Depreciation spreads the cost of a capital asset over the period it benefits a business. India requires two entirely separate depreciation calculations: one under the Companies Act, 2013 (Schedule II) for financial statements, and one under the Income Tax Act for computing taxable income - they are not meant to match, and the difference between them is a core building block of deferred tax.
Companies Act: SLM vs WDV
Straight Line Method (SLM) charges the same depreciation amount every year, spreading (cost minus residual value) evenly across the useful life. Written Down Value (WDV) applies a fixed percentage to the asset's remaining book value each year, so the charge is higher early on and tapers off - both methods bring the asset down to the same residual value by the end of its useful life.
Income Tax Act: the block of assets
Rather than tracking each asset separately, the Income Tax Act pools all assets of the same class and rate into one "block." The whole block is depreciated together on its Written Down Value - simpler to administer, but it means you cannot isolate the tax depreciation on one specific machine within a block.