What is WDV and SLM depreciation?

WDV (Written Down Value) method applies depreciation on the book value at the start of each year. As the book value decreases, the depreciation amount also decreases each year. SLM (Straight Line Method) applies depreciation on the original cost, so the annual depreciation amount remains the same throughout the useful life. WDV gives higher depreciation in early years while SLM spreads it evenly.

Which depreciation method is used for Income Tax in India?

Income Tax Act mandates the WDV (Written Down Value) method for all assets. Under Section 32, depreciation rates are prescribed for different asset blocks (buildings, plant & machinery, computers, vehicles etc.). The block concept means all assets of the same type are grouped and depreciation is on the total block value. There is no individual asset tracking under Income Tax.

What are depreciation rates under Companies Act ?

Companies Act (Schedule II) prescribes useful life for different assets and allows companies to choose WDV or SLM. Based on useful life: Buildings (RCC): 60 years. Furniture: 10 years. Plant & Machinery: 15 years. Computers & IT: 3 years. Vehicles: 8 years. Each useful life translates to a specific SLM rate and corresponding WDV rate.

What is the depreciation rate on computers under Income Tax?

Under Income Tax Act Section 32, computers and computer software attract depreciation at 40% per annum under the WDV method. This means a computer costing Rs 1 lakh will have WDV of Rs 60,000 after year 1, Rs 36,000 after year 2, and so on. The high 40% rate reflects the rapid obsolescence of computer technology.

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Depreciation Calculator India — WDV & SLM Methods

Calculate asset depreciation using WDV and SLM methods. Year-wise schedule with Companies Act and Income Tax Act rates.

WDV vs SLM: WDV gives higher early depreciation (e.g. computers at 63% year 1). SLM gives equal depreciation every year. Companies Act 2013 mandates useful-life based depreciation. Income Tax allows WDV rates.

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Depreciation Calculator

WDV & SLM — Companies Act and Income Tax Act rates

Asset Details

Asset Category

Original Cost of Asset *

₹

Salvage / Residual Value

₹

Estimated value at end of useful life. Default ₹0 (Companies Act: 5% of cost)

Depreciation Rate: —

WDV Rate (%) SLM Rate (%) or Useful Life (years)

Number of Years to Show

Asset Added During Year (half-year convention)

Income Tax: assets added after Oct 3 get 50% depreciation in year 1

Tax Rate (for tax saving)

Corporate / Personal Tax Rate

Depreciation Rates — Companies Act & Income Tax Act

Asset Category	Useful Life (Cos Act)	SLM Rate (Cos Act)	WDV Rate (Cos Act)	IT Act WDV Rate
Buildings (RCC)	60 years	1.67%	5.00%	10%
Buildings (Temporary)	3 years	33.33%	45.07%	40%
Furniture & Fittings	10 years	10.00%	25.89%	10%
Plant & Machinery (General)	15 years	6.67%	18.10%	15%
Computers & Peripherals	3 years	33.33%	45.07%	40%
Computer Software	3 years	33.33%	45.07%	25%
Motor Cars	8 years	11.88%	25.89%	15%
Heavy Goods Vehicles	8 years	11.88%	25.89%	30%
Intangible Assets	10 years	10.00%	25.89%	25%

📖 How to Use This Calculator

1
Select asset type Choose asset category — Building, Plant, Computers, Vehicles. Companies Act rates pre-loaded.
2
Enter cost and date Enter cost, purchase date and salvage value (usually 5% of cost).
3
Choose WDV or SLM WDV: higher early depreciation. SLM: equal depreciation each year.
4
Read schedule See annual depreciation and closing WDV for full useful life.

✅ Why Use This Calculator

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WDV & SLM

Both methods with side-by-side comparison.

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Companies Act Rates

Pre-loaded Schedule II rates and useful life.

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Year-Wise Schedule

Full depreciation table for the asset life.

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Compare Methods

WDV vs SLM comparison in one view.

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Tax Planning

Income Tax Act rates alongside Companies Act.

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❓ Frequently Asked Questions

What is WDV depreciation?+

WDV calculates depreciation on reducing balance each year — higher early, lower later. Most common for Income Tax Act purposes.

What is depreciation rate for computers?+

Computers have 3-year useful life under Companies Act 2013. WDV rate approximately 63%.

WDV vs SLM difference?+

WDV: higher early years, decreasing later. SLM: equal every year. WDV rate ≈ 2× SLM rate.