Depreciation Calculator (Income Tax & Companies Act)

Block-of-assets WDV under Section 33 (old Section 32) with the 180-day rule and additional depreciation, and Schedule II SLM / WDV book depreciation.

Last updated 30 Oct 2026. Checked against Income-tax Act, 2025 s.33; Form ITR-6 AY 2026-27 Schedule DEP · Page maintained by SKAG and Associates · Editorial policy

The Depreciation Calculator works out tax depreciation on a block of assets by the written down value method under Section 33 of the Income-tax Act, 2025 (Section 32 of the 1961 Act): the block rate, half the rate for assets used for less than 180 days in the year of purchase, and additional depreciation on new plant or machinery of a manufacturer. It also gives the Companies Act, 2013 book depreciation under Schedule II, straight line or written down value, over the useful life with a residual value of up to 5% of cost. Both show a year-wise schedule you can print.

Depreciation for

First year

Tax regime

Block of assets

Rate (% of WDV)

Years to show

Opening WDV of the block (₹)

Additions used 180 days or more (₹)

Additions used less than 180 days (₹)

Sale value of assets sold, less transfer expenses (₹)

Additions include new plant or machinery of a manufacturing or power business (additional depreciation)

Of which new machinery, 180 days or more (₹)

Of which new machinery, less than 180 days (₹)

Asset (Schedule II, Part C)

Useful life (years)

Method

Cost of the asset (₹)

Residual value (% of cost)

Date put to use

Depreciation

Depreciation, first year₹ 0

of which additional depreciation₹ 0

Closing WDV of the block₹ 0

Rate applied-

Enter the opening WDV and any additions or sales.

Indicative only. Tax depreciation follows the block and the rates prescribed in Appendix I to the Income-tax Rules; book depreciation follows the company's accounting policy within Schedule II. Check the current Appendix I on the Income Tax Department website before filing.

Year-wise schedule

Years run April to March. Use "Print / Save as PDF" below to keep a copy with your working papers.

Two sets of depreciation run side by side. For the income-tax return, assets are pooled in blocks and depreciated on the written down value (WDV) at the block rate under Section 33 of the Income-tax Act, 2025 (Section 32 of the 1961 Act up to FY 2025-26). For a company's accounts, each asset is depreciated over its useful life under Schedule II to the Companies Act, 2013. Choose which one to work out.

How the calculation works

Block of assets (income-tax): assets of the same class with the same rate form one block. Depreciation = rate × (opening WDV + additions − sale value of assets sold). Section 33(3) of the Income-tax Act, 2025 (Section 32(1)(ii) of the 1961 Act). Goodwill is not a depreciable asset.
Less than 180 days: an asset bought in the year and put to use for less than 180 days in that year gets half the rate in that year (Section 33(4); second proviso to Section 32(1) of the 1961 Act). It gets the full rate from the next year.
Additional depreciation: 20% of the cost of new plant or machinery acquired and installed by a business of manufacture or production, or of generation, transmission or distribution of power. If it is used for less than 180 days in the first year, 10% is allowed that year and the other 10% in the next year (Section 33(8) and (9); Section 32(1)(iia) of the 1961 Act). It is not available for second-hand machinery, ships, aircraft, office appliances, road transport vehicles, or machinery in an office or residential premises, and not in the new regime (Section 202(2)(a)(vi); Section 115BAC of the 1961 Act).
New regime cap: in the new regime and the concessional company regimes, depreciation on the 45% block is restricted to 40%, as the return validation rules for AY 2026-27 apply.
Sale for more than the block: if the sale value exceeds the opening WDV plus additions, the excess is a short-term capital gain; if every asset in the block is sold, the block ceases and the difference is a short-term capital gain or loss (Section 74 of the 2025 Act; Section 50 of the 1961 Act).
Schedule II (company accounts): the useful life should not ordinarily differ from Part C, and the residual value should not exceed 5% of the original cost; any difference must be disclosed with justification supported by technical advice. Depreciation on an addition is pro rata from the date it is put to use (Note 2). The WDV rate is 1 − (residual value ÷ cost)^{1 ÷ useful life}. Intangible assets follow the accounting standards, not Part C.

Law used: Sections 33, 74 and 202 of the Income-tax Act, 2025; Sections 32, 50 and 115BAC of the Income-tax Act, 1961; Appendix I to the Income-tax Rules; Schedule II to the Companies Act, 2013. Block rates as in Schedule DOA and DEP of Form ITR-6 for AY 2026-27. Official sources: the Income-tax Act, 2025 (Gazette), the Income Tax Department for Appendix I, and the Companies Act, 2013 (MCA).

Important note: This tool provides an indicative output only. It does not factor in every special provision, surcharge, exception, or recent notification. Verify the position on the official portal or with a qualified professional before acting on any computation.

Frequently Asked Questions

What is the 180-day rule for depreciation?

If an asset is acquired during the year and put to use for less than 180 days in that year, only half of the block rate is allowed on it for that year (Section 33(4) of the Income-tax Act, 2025; the second proviso to Section 32(1) of the 1961 Act). From the next year it is part of the block at the full rate. The date the asset is put to use, not the purchase date, decides the days.

Who can claim additional depreciation?

A business engaged in manufacture or production of any article or thing, or in generation, transmission or distribution of power, on new plant or machinery it acquires and installs. It is 20% of the actual cost, or 10% in the first year and 10% in the next year if the machinery is used for less than 180 days in the first year. It is not allowed on used machinery, ships, aircraft, office appliances, road transport vehicles or machinery installed in an office or residence, and not in the new regime.

Can a company use the income-tax rates in its books?

No. Book depreciation in a company's financial statements follows Schedule II to the Companies Act, 2013 (useful life, residual value of up to 5% of cost) and the accounting standards. The income-tax return uses the block-of-assets WDV rates. The two figures usually differ, and the difference is adjusted in the tax computation and gives rise to deferred tax.

Which method can a company use under Schedule II?

Schedule II prescribes useful lives, not a method. A company chooses the method, such as straight line or written down value, that best reflects how the asset is consumed, and applies it consistently. This calculator gives straight line and WDV, with the WDV rate derived from the useful life and the residual value.

What happens when an asset in a block is sold?

The sale value, less transfer expenses, is reduced from the block. If it exceeds the opening WDV plus additions, the excess is a short-term capital gain and no depreciation is allowed on that block for the year. If all assets of the block are sold, the block ceases and the difference between the sale value and the WDV is a short-term capital gain or loss (Section 74 of the 2025 Act; Section 50 of the 1961 Act).

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Published by SKAG and Associates, Chartered Accountants, New Delhi · Proprietor CA Gaurav Singh (ICAI M.No. 539050). General information only, not professional advice.

Depreciation Calculator (Income Tax & Companies Act)

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