Depreciation Calculator India as Per Companies Act & Income Tax Act Online
Calculate depreciation the Indian way – under the Companies Act 2013 (useful-life based, SLM or WDV) or the Income Tax Act (block-of-assets WDV at prescribed rates). Get a full year-wise schedule you can copy straight into Excel.
Book value over time
The asset’s value falls each year as depreciation is charged – steeply under WDV, evenly under Straight Line.
Year-wise depreciation schedule
| Year | Opening value | Depreciation | Closing value |
|---|---|---|---|
| Total | — | ₹0 | ₹0 |
This schedule is an estimate for planning. Companies Act depreciation is based on the useful life in Schedule II; Income Tax depreciation uses the block-of-assets WDV method at prescribed rates, with half the rate in the first year if the asset is used for under 180 days. The two regimes give different figures for the same asset – that difference is normal and is reconciled through deferred tax. Confirm with your CA before finalising accounts or returns.
Depreciation calculator as per Companies Act – better than Excel
Every company in India has to charge depreciation on its fixed assets, and the Companies Act 2013 sets out how. Rather than juggling a depreciation calculator as per Companies Act in Excel with hand-built formulas that are easy to get wrong, this tool applies the rules for you. Choose the Written Down Value or Straight Line method, enter the asset’s useful life from Schedule II and its residual value, and get an instant, accurate year-wise schedule you can copy into your own Excel sheet for your records.
How Companies Act 2013 depreciation works
Under the Companies Act 2013, depreciation is based on the useful life of an asset as given in Schedule II, not on fixed percentage rates. Under the Straight Line Method (SLM), the depreciable amount – cost minus residual value – is spread evenly across the useful life. Under the Written Down Value (WDV) method, a constant rate is applied to the reducing book value each year, so depreciation is higher in the early years. The residual value is generally taken as 5% of the original cost.
Depreciation calculator as per Income Tax Act online
Switch to the Income Tax tab to use this as a depreciation calculator as per the Income Tax Act online. Here, depreciation is not based on useful life but on prescribed percentage rates applied to a “block of assets” using the WDV method. Pick the asset block – computers, plant and machinery, furniture, buildings and so on – and the calculator applies the correct rate. It also handles the 180-day rule: if the asset was used for less than 180 days in the year of purchase, only half the normal depreciation is allowed that first year.
Depreciation rate as per Income Tax Act (FY 2025-26)
The depreciation rate as per the Income Tax Act depends on the asset block. These are the commonly used WDV rates for FY 2025-26:
| Asset block | WDV rate |
|---|---|
| Residential buildings | 5% |
| Buildings (factory / office) | 10% |
| Furniture & fittings | 10% |
| Plant & machinery (general) | 15% |
| Motor vehicles (general) | 15% |
| Intangible assets | 25% |
| Computers & software | 40% |
| Books (annual publications) | 40% |
Land is not depreciable. Many rates that were once 60–100% are now capped at 40%. Manufacturers may claim an extra 20% additional depreciation on new plant and machinery in the first year. Rates current for FY 2025-26; verify the latest schedule before filing.
Companies Act vs Income Tax Act depreciation
The two regimes are deliberately different and serve different purposes. Companies Act depreciation, based on useful life, governs the figures in your financial statements. Income Tax depreciation, based on block rates and the WDV method, governs your tax deduction. The same asset will usually show a different depreciation figure under each, and the gap is reconciled through deferred tax in the accounts. That is why many businesses maintain two depreciation schedules – one for the books, one for the return.
Frequently asked questions
How is depreciation calculated as per the Companies Act 2013?
Depreciation under the Companies Act 2013 is based on an asset’s useful life from Schedule II. Under SLM, the cost minus residual value is spread evenly over the life; under WDV, a constant rate is applied to the reducing book value each year, giving higher depreciation early on.
Is there a depreciation calculator as per Companies Act in Excel?
You can build one in Excel, but it is easy to make errors in the WDV rate formula or the residual value. This online calculator applies the Companies Act rules automatically and gives a year-wise schedule you can copy into Excel, removing the risk of formula mistakes.
What is the depreciation rate as per the Income Tax Act?
Rates depend on the asset block. For FY 2025-26, common WDV rates are 5% for residential buildings, 10% for factory buildings and furniture, 15% for plant and machinery and vehicles, 25% for intangibles, and 40% for computers and software.
What is the 180-day rule in income tax depreciation?
If an asset is purchased and put to use for less than 180 days in the financial year, only 50% of the normal depreciation rate is allowed in that first year. The full rate applies from the next year. This calculator applies the half-rate automatically when you select it.
Why do Companies Act and Income Tax depreciation differ?
They use different methods and purposes. Companies Act depreciation, based on useful life, determines your book profit. Income Tax depreciation, based on block WDV rates, determines your tax deduction. The difference between them is reconciled through deferred tax.
What method does the Income Tax Act use, WDV or SLM?
The Income Tax Act uses the Written Down Value (WDV) method on a block of assets as the default. The Straight Line Method is allowed only for power generation undertakings. So for most businesses, income tax depreciation is always WDV.