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Depreciation Calculator

Depreciation Calculator

Project year-by-year asset depreciation using the WDV method.

Asset Details

Asset Cost₹5 Lakh

₹

Asset Category

Years to Project

years

Put to use for 180 days or more in the year acquired?

Year-by-Year Depreciation (WDV)

Year	Opening Value	Depreciation	Closing Value
1	₹5,00,000	₹75,000	₹4,25,000
2	₹4,25,000	₹63,750	₹3,61,250
3	₹3,61,250	₹54,188	₹3,07,062
4	₹3,07,062	₹46,059	₹2,61,003
5	₹2,61,003	₹39,150	₹2,21,853

Written Down Value method, per Income Tax Act block rates — indicative estimate, not tax advice.

What this depreciation calculator is for

TaxNext's depreciation calculator projects the Written Down Value (WDV) of a business asset year by year, using the block-of-assets rates fixed by the Income Tax Act. It's aimed at small business owners and professionals working out how much depreciation they can claim on an asset each year.

• Project an asset's closing value year by year under the WDV method
• Look up the statutory rate for common asset categories
• See how the 180-day rule halves the first year's depreciation for late purchases

Depreciation rates by block

Asset block

Worked examples

Computer bought and used more than 180 days before year-end

Asset cost₹1,00,000
Year 1 depreciation — closing value ₹60,000₹40,000
Year 2 depreciation — closing value ₹36,000₹24,000
Year 3 depreciation — closing value ₹21,600₹14,400

Since the asset was in use for 250 days — over the 180-day threshold — the full 40% rate applies from year one. No half-rate adjustment is needed.

Machinery bought late in the financial year (under 180 days' use)

Asset cost₹5,00,000
Year 1 depreciation (half-rate) — closing value ₹4,62,500₹37,500
Year 2 depreciation — closing value ₹3,93,125₹69,375
Year 3 depreciation — closing value ₹3,34,156₹58,969

Because the machine was used for only 90 days in its year of purchase — under the 180-day threshold — the second proviso to section 32(1)(ii) halves the first year's depreciation rate to 7.5%. Full 15% applies from year two onward.

What this estimate covers

A single asset depreciated in isolation under the WDV method. A real tax filing pools multiple assets of the same block into one combined block with mid-year additions and disposals — this calculator models one asset's own block, the common case for a small business checking a single purchase.

Figures are illustrative estimates, not tax advice. Rates as published by the Income Tax Department depreciation rate tables. Last reviewed 11 August 2026.

Reviewed by VNAV & Associates, Chartered Accountants. Last updated: August 2026.

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