Home/ Calculators/ Depreciation Calculator
Depreciation Calculator
Straight-line and written-down value side by side, with the full schedule for both.
Runs in your browser Nothing is uploaded Free, no sign-up
Result
—
Most Indian businesses keep two depreciation figures: straight-line for the accounts and written-down value for tax.
The two methods
Straight-line spreads cost evenly over useful life — predictable, and what the Companies Act schedule expects. Written-down value applies a fixed percentage to the reducing balance, so the charge is front-loaded and never quite reaches zero. The Income Tax Act requires WDV on blocks of assets.
Common tax rates
Plant and machinery 15%, computers and software 40%, furniture 10%, buildings 10%, vehicles 15%. Assets put to use for under 180 days in the year of purchase get half the normal charge.
Why the difference matters
WDV defers tax into later years, which helps cash flow early in an asset's life. The totals converge eventually — depreciation only ever spreads the same cost — but the timing is worth real money.
Frequently asked questions
What is the difference between SLM and WDV?
Straight-line spreads the cost evenly over useful life. Written-down value applies a fixed percentage to the reducing balance, so the charge is front-loaded and never quite reaches zero. The totals converge; the timing differs.
Which method does Indian tax law require?
The Income Tax Act requires written-down value on blocks of assets. The Companies Act schedule is built around useful lives, which most companies implement on a straight-line basis. Businesses commonly maintain both.
What are the common depreciation rates?
Under the Income Tax Act: plant and machinery 15%, computers and software 40%, furniture 10%, buildings 10%, motor vehicles 15%. Assets put to use for under 180 days in the year of purchase get half the normal charge.
Can I claim additional depreciation?
Manufacturing businesses can claim 20% additional depreciation on new plant and machinery in the year it is installed, subject to conditions. It does not apply to office equipment, vehicles or second-hand assets.