Depreciation Calculator Online - WDV & SLM Depreciation Tool | Bizeneed
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The key facts, in one place
Everything a founder usually has to piece together from five different pages, in one place.
- Methods Supported
- WDV + SLM
- Asset Blocks
- 10+ Categories
- Schedule II Rates
- IT Act 1961
- Output
- Year-wise Table
- Tax Planning
- Compare Methods
- Free to Use
- No Signup
What is a Depreciation Calculator?
Depreciation is the reduction in the value of an asset over time due to wear and tear, obsolescence, or usage. For businesses and individuals in India, depreciation is a critical concept for tax planning and financial reporting.
Under the Income Tax Act, 1961, depreciation on assets is allowed as a deduction under Section 32. The Income Tax Department prescribes specific depreciation rates and useful lives for different categories of assets under Schedule II of the Act.
A Depreciation Calculator helps you compute the depreciation amount for each financial year using either the Written Down Value (WDV) method or the Straight Line Method (SLM). This tool is essential for accurate tax filing, financial planning, and maximizing tax savings.
Depreciation Methods - WDV vs SLM
Understand the key differences between the two depreciation methods.
WDV (Written Down Value)
Written Down Value Method
SLM (Straight Line)
Straight Line Method
| Aspect | WDV (Written Down Value) | SLM (Straight Line) |
|---|---|---|
| Full Name | Written Down Value Method | Straight Line Method |
| Calculation Base | Opening WDV × Rate% | (Cost − Residual) ÷ Useful Life |
| Depreciation Amount | Diminishing each year | Fixed amount each year |
| Early Year Tax Shield | ✓ Higher | ✕ Lower |
| Late Year Tax Shield | ✕ Lower | ✓ Same (constant) |
| Total Depreciation | Same as SLM | Same as WDV |
| Allowed Under IT Act | Yes (most common) | Yes |
| Best For | Tax savings, rapid write-off | Consistent expense matching |
Who Needs a Depreciation Calculator?
- Business owners and proprietors who need to claim depreciation on business assets for income tax filing
- Chartered Accountants and tax professionals computing depreciation for client tax returns
- Companies and LLPs maintaining books of accounts under Companies Act and Income Tax Act
- Salaried individuals claiming depreciation on assets used for business or profession
- Startups and MSMEs tracking asset values for financial statements and tax compliance
- Anyone planning asset purchases and wanting to understand the tax impact over the asset's life
Documents for Depreciation Claims
Common to every entity
- Purchase Invoice / Bill of EntryMandatory
- Asset Registration CertificateMandatory
- Date of Purchase / Installation proofMandatory
- PAN Card of AssesseeMandatory
- Previous Year's Balance Sheet (for WDV carry forward)
- Depreciation Schedule from CA
How to Claim Depreciation
Identify Asset Block
Group similar assets into asset blocks. Each block has a prescribed rate and useful life.
Determine Opening WDV
Opening WDV for Year 1 is the actual cost of the asset. For subsequent years, use the closing WDV from the previous year.
Apply Depreciation Rate
Under WDV: Opening WDV × Rate%. Under SLM: (Cost − Residual Value) ÷ Useful Life.
Account for 50% Rule
Section 32(1) allows only 50% of the normal rate if the asset is put to use for less than 180 days in the financial year of purchase.
File Tax Return
Report depreciation in the relevant schedule of your ITR form. Keep supporting documents ready for verification.
Depreciation Timeline
Depreciation is calculated for each financial year throughout the useful life of the asset.
| Stage | Duration |
|---|---|
| Year 1 | |
| Years 2-N | |
| Final Year |
Fees & Pricing
Our depreciation calculator is free to use. For professional assistance:
Self-Service
Use our calculator
- WDV & SLM calculation
- Year-wise schedule
- Multiple asset blocks
- No signup required
CA Assisted
Depreciation audit
- Full depreciation audit
- ITR filing support
- Asset register creation
- CA verification
Enterprise
Full accounting
- Asset management
- Fixed asset register
- Audit support
- Dedicated CA
Full fee breakdown
| Particulars | Government fee | Professional fee |
|---|---|---|
| Online Calculator | Free | Free |
| CA Depreciation Audit | N/A | Rs. 2,999 onwards |
| Full Accounting Package | N/A | Custom pricing |
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Benefits of Using Our Depreciation Calculator
Accurate Calculations
- IT Act Schedule II rates applied automatically for precise depreciation figures.
Both Methods
- Compare WDV and SLM side by side to choose the optimal method for your tax planning.
Year-wise Schedule
- Get a detailed year-by-year breakdown with opening WDV, depreciation, and closing values.
50% Rule Handling
- Automatically accounts for the 50% depreciation rule for assets used less than 180 days in the FY of purchase.
Free & No Signup
- Use the calculator instantly without creating an account or providing personal details.
Tax Planning
- Understand which method gives higher tax shield in early years for better investment decisions.
Common Depreciation Mistakes to Avoid
Wrong asset classification
Always classify assets under the correct IT Act Schedule II block with the right rate.
Ignoring the 50% rule
Apply 50% depreciation rate if the asset was put to use for less than 180 days in the FY of purchase.
Not maintaining asset register
Maintain a fixed asset register with purchase date, cost, and depreciation details for each asset.
Using wrong useful life
Follow the useful lives prescribed under Schedule II of the Income Tax Act.
Claiming depreciation on exempt assets
Depreciation is not allowed on assets used for generating exempt income under Section 14.
Mixing up WDV and SLM
Once you choose a method, consistently apply it. WDV is most commonly used for tax purposes.
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Frequently asked questions
Depreciation under Section 32 of the Income Tax Act is a deduction allowed to taxpayers for the decline in value of tangible or intangible assets used for business or profession. It is calculated based on prescribed rates and useful lives specified in Schedule II of the Act.
Under WDV (Written Down Value) method, depreciation is calculated on the opening written-down value each year at the prescribed rate, resulting in decreasing depreciation amounts. Under SLM (Straight Line Method), a fixed amount is written off each year by dividing the depreciable amount (Cost − Residual Value) by the useful life.
As per Section 32(1) of the Income Tax Act, if an asset is put to use for less than 180 days in the financial year of purchase, only 50% of the normal depreciation rate is allowed for that year. This applies to both WDV and SLM methods.
Under Schedule II of the Income Tax Act, computers and computer software have a prescribed depreciation rate of 40% under the WDV method with a useful life of 3 years.
Generally, once you choose a depreciation method, you should consistently apply it. However, with the approval of the Assessing Officer, a change of method may be permitted in certain circumstances.
Under Schedule II, the residual value of an asset is assumed to be 5% of the actual cost of the asset. You can set a different residual value if it is substantively higher.
Depreciation is allowed on assets owned by the assessee and used for business or profession. Assets used for generating exempt income are not eligible for depreciation under Section 14. Land is not eligible for depreciation.
Depreciation is claimed under the 'Profits and Gains from Business or Profession' section of your ITR. For presumptive taxation under Section 44AD, depreciation is deemed to be already allowed and cannot be claimed separately.
Written by Bizeneed Research Team, Business Compliance & Tax Planning Experts
Last updated 2026-09-06
Sources
- Income Tax Act, 1961 - Section 32 & Schedule II
- CBDT Circulars on Depreciation
- Institute of Chartered Accountants of India
The information on this page is for general guidance only and does not constitute legal or professional tax advice. Please consult a Chartered Accountant for advice specific to your situation.
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