Free Tools Depreciation Calculator

Depreciation Calculator — WDV & SLM Method

Calculate asset depreciation as per Income Tax Act (WDV method) or Companies Act (SLM method). Get year-by-year depreciation schedule.

Asset Details

Depreciation Method

WDV: Depreciation applies on the written-down value each year. Commonly used for income tax purposes.

Depreciation Summary

Asset Cost ₹0
Method WDV
Rate 0%
Year 1 Depreciation ₹0
Total Depreciation ₹0
Closing WDV ₹0

WDV vs SLM

WDV: Depreciation on reducing balance — higher in early years.
SLM: Equal depreciation every year — simpler calculation.

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Year-by-Year Depreciation Schedule

YrOpening WDVDepreciationTax Saving*Closing WDV

* Tax saving estimated at 30% tax rate (indicative only).

Depreciation Rates — Income Tax Act

Asset Type WDV Rate
Residential buildings 5%
Non-residential buildings 10%
Temporary wooden / bamboo structures 40%
Furniture & fittings 10%
General plant & machinery 15%
Motor cars (not used in hire) 30%
Computers & peripherals / software 40%
Ships 20%
Aircraft 40%
Patents, trademarks, know-how, copyright 25%
Energy-saving devices 40%
Air pollution / water pollution control equipment 100%

Depreciation FAQ

What is the WDV method of depreciation?

WDV (Written Down Value) method calculates depreciation on the remaining book value of the asset each year. The depreciation amount is higher in the initial years and decreases over time. This method is mandatory for income tax purposes in India under the Income Tax Act, 1961.

What is the SLM method of depreciation?

SLM (Straight Line Method) calculates equal depreciation each year based on the original cost of the asset. It is simpler to calculate and is used under the Companies Act 2013 for financial reporting purposes.

Can a company use both WDV and SLM?

Yes. A company must use WDV for income tax purposes and may use either WDV or SLM for accounting purposes (Companies Act). However, consistency must be maintained once a method is chosen.

What is the depreciation rate for computers under Income Tax Act?

Computers, computer software, and peripherals attract 40% depreciation under the WDV method as per the Income Tax Act, 1961. This high rate reflects the rapid obsolescence of technology assets.

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