Depreciation Calculator As Per Income Tax Act

Purchase Amount* :
Purchase Date* :
Depreciation Rate* :
Eligible for Additional Depreciation* :
  Yes     No
Rate of Additional Depreciation* :
  20%     35%


Depreciation as per Income Tax Act (Section 32)

  1. Depreciation is allowable as expense in Income Tax Act, 1961 on basis of block of assets on Written Down Value (WDV) method. Depreciation on Straight Line Method (SLM) is not allowed.
  2. Depreciation can be claimed at lower rate as per income tax act. But for the next year your wdv will be considered as reduced by the percentage of depreciation prescribed. For eg if an asset is of Rs. 1 lakh and 80% depreciation is prescribed for the asset and you charge only rs. 30,000 as depreciation, in this case next year wdv will be considered as rs. 20,000 only not rs. 70,000.
  3. If asset is put to use for less than 180 days then amount equal to 50% of the amount calculated using normal depreciating rates is allowed as depreciation.
    i.e Asset put to use on or before 3rd oct of the year (4th oct in case of leap year) then 100% depreciation is allowed, otherwise 50%.

Rates of Depreciation

Also Read – Formulas for calculating depreciation rates