WDV Depreciation Calculator (India)

It depreciates an asset by a fixed percentage of its reducing book value each year: depreciation = rate × opening WDV, and the closing WDV carries to next year. Because it's applied to a shrinking balance, the expense is largest in year one and declines over time, and the book value approaches but never quite reaches zero.

Rates are prescribed by asset block — commonly 15% for general plant and machinery, 40% for computers and software and certain pollution-control/energy-saving equipment, 10% for furniture and fittings, and specific rates for buildings (5–10%) and vehicles. Depreciation is computed on the written-down value of the whole block of assets, not individually. Confirm the current rates, as they're amended periodically.

Under the Income Tax Act, if an asset is put to use for less than 180 days in the year of acquisition, only 50% of the normal depreciation rate is allowed in that first year; the full rate resumes the following year. It's a frequent adjustment when an asset is bought in the second half of the financial year — factor it into year one when reconciling to the tax computation.

The Companies Act, 2013 lets companies use either WDV or straight-line (SLM), based on the asset's useful life in Schedule II, for their financial statements — while the Income Tax Act mandates WDV on blocks of assets (with the exception of power-generating units) for tax. So a company often maintains book depreciation (SLM or WDV per Schedule II) and separate tax depreciation (WDV on blocks), reconciling the difference. This calculator models the WDV mechanics for either.