How to use it
- Choose Companies Act useful-life or Income Tax rate mode.
- Enter the relevant asset assumptions from reviewed records.
- Review annual depreciation and closing value as an illustration.
GST & Tax · Data flow disclosed · Beta
Depreciation Calculator
Illustrate separate Companies Act useful-life and Income Tax rate arithmetic for an asset.
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Check the method before you rely on the result
- Method
- Keep useful-life and rate-based modes separate; Income Tax mode applies the 50% first-year restriction below 180 days.
- Companies Act illustration = (cost − residual) ÷ useful life × days ÷ 365; Income Tax illustration = opening WDV × rate × 50% when used below 180 days, otherwise the full entered rate
- Effective period
- Formula-based; no statutory effective period
- Last verified
- 11 August 2026
- Review every 180 days
- Reviewer status
- Named policy and professional reviewer: external review pending
- Privacy
- Inputs and bundled policy data stay in this browser. They are not sent to analytics, a backend, a URL or a log, and are not saved by default.
Important limitations
- Useful lives, residual values, blocks, rates, component accounting and tax eligibility are not inferred.
- The output is illustrative arithmetic, not a statutory books or return schedule.
Browse GST & Tax · Methodology · Sources
A quick guide
Use the number with context
The answer is only useful when you know what it includes and what it leaves out.
Formula
Companies Act illustration = (cost − residual) ÷ useful life × days ÷ 365; Income Tax illustration = opening WDV × rate × 50% when used below 180 days, otherwise the full entered rate
The number reflects only the selected arithmetic mode and supplied assumptions.
Make it concrete
Worked example
₹1,00,000 cost, ₹5,000 residual and 5 years produce ₹19,000 for a full SLM year.
Boundaries
What this tool does not assume
Limitations
- Useful lives, residual values, blocks, rates, component accounting and tax eligibility are not inferred.
- The output is illustrative arithmetic, not a statutory books or return schedule.
Edge cases
- Residual value cannot exceed cost.
- Income Tax mode requires a user-entered rate.
Last reviewed 11 August 2026 · Formula version 1.0
Method & sources
How this result is grounded
The formula is deterministic and runs in your browser. Read the reference below for the method used by this tool.
- Companies Act and Schedule II reference material
Ministry of Corporate Affairs · official reference · Checked 11 August 2026
Authority: MCA
- Income Tax allowances allowable to taxpayers — Section 32
Income Tax Department, Ministry of Finance · official reference · Checked 11 August 2026
Authority: INCOME_TAX_DEPARTMENT
Questions
Frequently asked
Does the calculator know the correct rate for my asset?
No. Enter a reviewed rate or useful life and verify the applicable policy independently.
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Source register checked 11 August 2026.