Depreciation Calculator
Calculate depreciation as per the Income Tax Act using the Written Down Value method — live, with the half-year rule and additional depreciation for manufacturing assets.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Year-wise WDV schedule
| Year | Opening WDV | Depreciation | Addl Dep | Total | Closing WDV |
|---|
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Disclaimer: Indicative estimate using the WDV method per the Income Tax Act. Actual depreciation depends on block-of-assets balances, additions/deletions and business use. Rates per Schedule II.
How depreciation works — the WDV method & block of assets
Under the Income Tax Act, depreciation is charged on the Written Down Value (WDV) — a fixed percentage of the opening balance each year, not the original cost. Assets of the same class and rate form a single block of assets, and depreciation is computed on the block as a whole. Because the base shrinks every year, the rupee amount of depreciation falls over time and the WDV approaches zero but never fully hits it.
The half-year (180-day) rule
The date you put an asset to use decides its first-year depreciation. If the asset is used for 180 days or more in the year (acquired in H1, April–September), you claim the full year's depreciation. If it is used for less than 180 days (acquired in H2, October–March), you claim only half the normal depreciation in Year 1. The unclaimed half is not lost — it stays in the WDV and is depreciated in later years. Additional depreciation follows the same split: 20% normally, 10% if the half-year rule applies.
Common depreciation rates (WDV)
These are the WDV rates applied by the calculator, drawn from Schedule II of the Income Tax Act. Pick the matching block above and the rate is applied automatically.
| Asset block | WDV rate |
|---|---|
| Buildings (residential / general) | 10% |
| Furniture & fittings | 10% |
| Plant & machinery — general | 15% |
| Motor vehicles (non-commercial) | 15% |
| Plant & machinery — special / ships | 20% |
| Intangible assets (patents, know-how) | 25% |
| Computers, software, books, aircraft | 40% |
| Renewable energy devices | 40% |
Key terms explained
Written Down Value (WDV)
The opening balance of an asset each year after prior depreciation. Depreciation is a percentage of this shrinking value, so the amount charged reduces year after year.
Block of assets
A group of assets in the same class carrying the same rate. Depreciation is worked out on the block, and additions or sales adjust the block's WDV rather than each asset individually.
Half-year (180-day) rule
An asset used for less than 180 days in the first year gets only 50% of the normal depreciation that year. The balance stays in the WDV for future years.
Additional depreciation
Under Sec 32(1)(iia), new plant & machinery for manufacturing earns an extra 20% of cost in Year 1 (10% if used under 180 days), over and above normal depreciation.
How the Depreciation Calculator works
4 steps, start to finish — the same order the tool follows.
- 01Enter the total asset cost of acquisition in rupees.
- 02Select the asset category (buildings, plant and machinery, computers, etc.) to auto-apply its WDV rate.
- 03Pick the acquisition half-year (H1 or H2) so the half-year rule can halve first-year depreciation for H2 assets, and choose the schedule length.
- 04Toggle additional depreciation to Yes for new manufacturing plant and machinery, then calculate to see the year-wise WDV schedule.
Questions people ask
Short answers on Depreciation Calculator. Tap a question to open it.
01Which depreciation method does the Income-tax Act use?
The Income-tax Act uses the Written Down Value (WDV) method on a block of assets, so each year depreciation is charged on the reducing balance rather than the original cost. Companies Act 2013 separately allows useful-life based SLM or WDV.
02What depreciation method is used for income tax purposes in India?
The Written Down Value (WDV) method is used for computing depreciation under the Income Tax Act for all assets except undertakings engaged in generation or supply of power, which may use the Straight Line Method (SLM). Depreciation rates are prescribed under Schedule II-equivalent rules.
03What is the half-year rule?
If an asset is put to use for less than 180 days in the year (broadly, acquired in the October to March half), only 50% of the normal depreciation is allowed in the first year. The full rate applies from the next year.
04What is the depreciation rate for computers and software under the Income Tax Act?
Computers including laptops and computer software are eligible for depreciation at 40% per annum on the WDV basis under the Income Tax Rules. This is one of the highest depreciation rates, making computer assets tax-efficient for businesses.
05What is additional depreciation under section 32(1)(iia)?
Additional depreciation of 20% of cost is available on new plant and machinery acquired and installed for manufacturing or production. It is restricted to 10% in the first year if the asset is used for less than 180 days.
06Is additional depreciation available to manufacturing companies?
Yes. Under Section 32(1)(iia), manufacturing companies and power generation companies can claim additional depreciation of 20% on new plant and machinery in the year of purchase. The rate is 35% for assets installed in notified backward areas.
07What are the common WDV rates?
Typical Income-tax rates are 15% for general plant and machinery and motor vehicles, 10% for buildings and furniture, 40% for computers and software, and 25% for intangible assets. Always confirm the current rate for your asset block.
08Can depreciation be claimed on a car used for business?
Yes. Motor vehicles used for business purposes are depreciable at 15% per annum (WDV). If a car is used partly for business and partly for personal purposes, depreciation is allowed only for the business-use proportion. Luxury cars may have capped values for depreciation.
09What is the depreciation rate for buildings under income tax?
Residential buildings used for business or profession are depreciated at 5% per annum (WDV). Non-residential buildings (office buildings, factories) are also depreciated at 10%. Temporary structures made of wood or similar materials attract 100% depreciation.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.