Two depreciation regimes in one place — the Income Tax Act block-of-assets WDV method, and the Companies Act, 2013 Schedule II useful-life method. Add as many blocks or assets as you like and read off the whole schedule.
Block of assets — WDV method (s. 32)
Schedule II — useful-life method
How the Income Tax block method works
WDV of the block = opening WDV + additions during the year − moneys received on assets sold. Depreciation is charged on the block, not on individual assets.
180-day rule: assets put to use for less than 180 days in the year of purchase get only half the normal rate that year.
Additional depreciation (s. 32(1)(iia)): 20% of the cost of new plant & machinery used in manufacturing (10% if used < 180 days, the balance 10% next year). Not available if you opt for 115BAA / 115BAC.
Block extinguished: if sale proceeds exceed the block, or all assets are sold, no depreciation is allowed and a short-term capital gain / loss arises under s. 50.
Rates are from Appendix I (maximum rate 40% since AY 2018-19). The Income-tax Act, 2025 (s. 33, from FY 2026-27) keeps the same rates and method.
How the Companies Act Schedule II method works
Depreciation is based on the asset's useful life, not a fixed rate. Residual value is capped at 5% of cost.
SLM: (Cost − Residual) ÷ Useful life. WDV rate = 1 − (Residual / Cost) raised to the power (1 / life).
Pro-rata: in the year of purchase or sale, depreciation is charged for the number of days the asset was held.
Useful lives shown are the indicative Part C lives; a company may adopt a different life with disclosure and technical justification.
Disclaimer: This calculator is a free reference tool based on the provisions cited. Results are indicative and may not cover every special case (extra-shift depreciation, component accounting, power-sector SLM under Appendix II, slump sale, conversion, or partial business use). Verify against the bare Act, Income Tax Rules Appendix I, and Companies Act Schedule II before acting, and consult a professional. In conformity with the ICAI Website Guidelines.
