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Asset Depreciation Calculator

Calculate asset depreciation as per Schedule II of the Companies Act 2013. Supports SLM and WDV methods based on useful life.

Asset Details
Enter the historical cost and purchase date.
(Usually 5% per Schedule II)
Calculated Method
Straight Line
Total Depreciable Amount
₹ 95,000
Residual: ₹ 5,000
Depreciation Trend
Visual representation of net book value over 0 years.
Depreciation Schedule
Year-wise breakdown of asset value.
FYOpeningDepreciationClosing

Understanding Depreciation (Companies Act 2013)

Key Concepts

Unlike the Income Tax Act, which prescribes fixed percentage rates, the Companies Act 2013 (Schedule II) focuses on the useful life of the asset. This approach ensures that financial statements present a "true and fair" view by matching the cost of the asset with the revenue it helps generate over its life.

  • Cost: Acquisition price + incidentals.
  • Residual Value: Value at the end of life (Default 5%).
  • Useful Life: Estimate of how long the asset will be used.

Calculation Methods

Straight Line Method (SLM)

Formula: (Cost - Residual) / Useful Life

Ideal for assets that provide uniform utility over time, like furniture or buildings.

Written Down Value (WDV)

Formula: Rate = [1 - (s/c)^(1/n)]

Ideal for assets that lose value quickly in early years, like computers or vehicles.

Note: In the first year of purchase, depreciation must be calculated on a pro-rata basis from the date the asset is put to use until the end of the financial year (March 31).

Companies Act vs. Income Tax Act

FeatureCompanies Act 2013Income Tax Act 1961
BasisUseful Life of AssetBlocks of Assets (Percentage)
ObjectiveTrue & Fair Financial ReportingTax Computation / Liability
Residual ValueGenerally 5% of costNil (Asset can be depreciated to ₹0)
MethodsSLM, WDV, or Unit of ProductionMainly WDV (SLM for Power Sector)