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Depreciation Calculator

Income-tax depreciation by block with the 180-day rule, and Companies Act SLM or WDV schedules

  • Free
  • No signup
  • Indian rules
1

Block of assets

Rates from Appendix I to the Income-tax Rules, 2026, on the written down value
2

This tax year

· April to March

Every asset in this block was sold this year

The block ceases to exist: no depreciation, capital gain or loss instead

3

Additional depreciation

· optional

New plant or machinery bought by a manufacturer or power company

Not for second-hand machines, office appliances, vehicles or machines in offices or homes

Good to know

  • Income-tax works on blocks: every asset with the same rate is pooled, and depreciation is a percentage of the pool, not of each asset.
  • An asset bought and put to use for less than 180 days in the tax year gets half the rate in that year, then the full rate after.
  • Money from a sale is taken off the block. If it is more than the block, the excess is a short-term capital gain and depreciation for the year is nil.
  • If business profit before depreciation is too small, the unabsorbed depreciation is carried forward to later years.
  • Land is not depreciable. Goodwill is not an intangible asset for depreciation.

Results

Depreciation for the year

₹1,72,500

Block rate 15% · closing WDV ₹10,77,500

Opening WDV₹8,00,000
Add: additions in the year₹5,00,000
Less: money from sales₹50,000
WDV before depreciation₹12,50,000
At full rate (15%) on ₹10,50,000₹1,57,500
At half rate (7.5%) on ₹2,00,000₹15,000
Closing WDV (next year's opening)₹10,77,500

Income-tax mode follows sections 33, 41 and 74 of the Income-tax Act, 2025 and the rates in Appendix I to the Income-tax Rules, 2026, for tax year 2026-27 onwards. Companies Act mode follows Schedule II to the Companies Act, 2013. Confirm the block, useful life and dates with your CA.

How it works

What this tool does.

Work out income-tax depreciation on a block of assets under section 33 of the Income-tax Act, 2025, with the half rate for assets used under 180 days and the Appendix I rates. Or build a year-by-year SLM or WDV schedule from cost, residual value and useful life under Schedule II to the Companies Act, 2013.

Pick a mode. In Income-tax mode, choose the block (its rate comes from Appendix I to the Income-tax Rules, 2026), then enter the opening written down value, additions put to use for 180 days or more, additions put to use for less than 180 days and any money from assets sold. The calculator gives the depreciation at full and half rate, any additional depreciation on new plant and machinery, and the closing WDV, or the short-term capital gain if sales exceed the block. In Companies Act mode, pick the asset type to fill in its Schedule II useful life, enter cost, residual value (5% by default) and the date put to use, and choose SLM or WDV. You get the rate and a schedule for every financial year, pro rata in the first and last years.

Rules and dates last reviewed: October 2026

Official sources

Depreciation Calculator formula

Income-tax: WDV of block = opening WDV + additions − money from sales. Depreciation = rate × WDV, at half the rate on additions put to use for less than 180 days in the tax year (section 33(4)). Sale money above opening WDV + additions is a short-term capital gain (section 74). Companies Act: SLM depreciation a year = (cost − residual value) ÷ useful life. WDV rate = 1 − (residual value ÷ cost)^(1 ÷ useful life). In the year of addition, depreciation is pro rata to the days in use.

Worked example

A Rajkot engineering firm’s plant and machinery block (15%) has an opening WDV of ₹8,00,000 on 1 April 2026. It buys a CNC machine for ₹3,00,000, put to use on 10 June 2026, and a compressor for ₹2,00,000, put to use on 5 January 2027. It sells an old lathe for ₹50,000.

  1. WDV before depreciation = ₹8,00,000 + ₹3,00,000 + ₹2,00,000 − ₹50,000 = ₹12,50,000
  2. The compressor is used for 86 days (5 January to 31 March), under 180, so it gets half the rate: ₹2,00,000 × 7.5% = ₹15,000
  3. The rest of the block gets the full rate: ₹10,50,000 × 15% = ₹1,57,500
  4. Tax depreciation for 2026-27 = ₹1,57,500 + ₹15,000 = ₹1,72,500; closing WDV = ₹12,50,000 − ₹1,72,500 = ₹10,77,500
  5. In the books under Schedule II (15-year life, 5% residual value, SLM), the CNC machine is depreciated at (₹3,00,000 − ₹15,000) ÷ 15 = ₹19,000 a year
  6. It was in use for 295 days of 2026-27, so the first-year charge is ₹19,000 × 295 ÷ 365 = ₹15,356

Claim ₹1,72,500 in the tax return for tax year 2026-27 and carry ₹10,77,500 forward as the block’s opening WDV. The books show ₹15,356 for the CNC machine in its first year.

Sleet Accounting

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See how it works
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Questions

Depreciation Calculator, answered.

Something else? Message us on WhatsApp at +91 82001 72869 or write to sales@getsleet.cloud.

What are the income-tax depreciation rates for tax year 2026-27?

They are in Appendix I to the Income-tax Rules, 2026, applied to the written down value of each block: residential buildings 5%, other buildings 10%, furniture and fittings 10%, plant and machinery 15%, motor cars not used for hire 15%, buses, lorries and taxis used for hire 30%, computers and software 40%, and intangible assets such as patents, trademarks and licences 25%. These are the same rates as the old Appendix I under the 1961 Act.

What is the 180-day rule for depreciation?

Under section 33(4) of the Income-tax Act, 2025, if an asset is acquired during the tax year and put to use for business for less than 180 days in that year, depreciation is restricted to 50% of the prescribed rate. From the next year it gets the full rate on the block. An asset put to use on or before about 3 October is used for 180 days or more by 31 March.

What happens to depreciation when I sell an asset?

The sale money is taken off the block’s written down value under section 41(1)(c). If the money is more than the opening WDV plus the year’s additions, the excess (less sale expenses) is a short-term capital gain under section 74(2) and there is no depreciation on that block for the year. If every asset in the block is sold, the block ceases to exist and the gain or loss is short-term under section 74(3).

What is additional depreciation?

Under section 33(8) and (9), a business that manufactures or produces goods, or generates, transmits or distributes power, gets an extra 20% of the actual cost of new plant and machinery in the year it is acquired and put to use. If it is used for less than 180 days that year, 10% is allowed then and 10% in the next tax year. It does not apply to second-hand machines, ships, aircraft, office appliances, road vehicles or machines installed in offices or homes.

How is the WDV rate worked out under the Companies Act?

Schedule II gives useful lives, not rates, and says residual value should normally not exceed 5% of cost. The WDV rate that brings the cost down to the residual value over the life is 1 − (residual value ÷ cost)^(1 ÷ life). With a 5% residual value, that is 18.10% for a 15-year life and 63.16% for a 3-year life.

Why is book depreciation different from tax depreciation?

They follow different rules. Company accounts use the useful lives in Schedule II to the Companies Act, 2013, asset by asset and pro rata by days. The tax return uses the block rates in Appendix I with the 180-day half-rate rule. The difference between the two is a timing difference that gives rise to deferred tax in the accounts.

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