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Depreciation Calculator

Calculate Asset Depreciation using Straight Line (SLM) & Written Down Value (WDV) methods.

Asset Details

Original purchase price of the asset.
Estimated resale value at the end of its useful life.
Expected number of years the asset will be used.
SLM deducts the same amount every year. WDV deducts a percentage, meaning higher deductions early on.

Depreciation Schedule

SLM Method
Annual Depreciation

₹ 9,000

Final Book Value

₹ 10,000

Year Opening Value (₹) Depreciation (₹) Closing Value (₹)

Understanding Depreciation Methods

Straight Line Method (SLM)

Under SLM, an equal amount of depreciation is charged every year over the useful life of the asset. This is simplest for accounting and assumes the asset's economic usefulness is the same each year.

Formula: (Cost - Salvage Value) / Useful Life
Written Down Value (WDV)

Also known as the Declining Balance method. Under WDV, depreciation is charged at a fixed percentage on the reduced balance of the asset. This means higher depreciation in early years, better reflecting physical wear and tear on tech or vehicles.

Formula: Book Value × Rate of Depreciation

When to use which?

The Companies Act, 2013 allows companies to use either SLM or WDV based on the estimated useful life of the assets prescribed in Schedule II. But for Income Tax purposes in India, businessmen and professionals are required to use the WDV method exclusively (with specific exceptions like power generating units).

Frequently Asked Questions

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It represents the wear and tear, obsolescence, or reduction in value of an asset. It is a non-cash expense that reduces taxable income.
SLM (Straight Line Method) charges equal depreciation every year: (Cost - Salvage Value) / Useful Life. WDV (Written Down Value) charges higher depreciation in early years and lower in later years by applying a fixed rate on the remaining book value.
For Income Tax in India, WDV method is mandatory (as per Section 32). For Companies Act (financial reporting), companies can choose SLM or WDV. The rates differ between Income Tax Act and Companies Act.
Common rates under IT Act (WDV): Buildings - 10%, Furniture - 10%, Plant & Machinery - 15%, Computers - 40%, Vehicles - 15-30%, Intangible assets - 25%. Additional depreciation of 20% is available for new manufacturing plant & machinery.
Yes, depreciation can be claimed on second-hand/used assets. For Income Tax, the WDV rate remains the same regardless of whether the asset is new or used. The depreciation is calculated on the actual purchase price of the second-hand asset.