Depreciation calculator — Income-tax and Companies Act
Block-wise WDV depreciation under the Income-tax Act, 2025 (Rules 2026, Appendix I), and year-wise Schedule II depreciation for company accounts.
✓Checked against the official Act and rules · verified 28 October 2026
Depreciation on a block of assets
WDV on the first day of the year
Money received for assets sold, discarded or destroyed, including scrap value
Assets bought during the year
Full rate
Half rate
Additional depreciation — new plant and machinery of a manufacturer or power company
20% of cost
10% now, 10% next year
Balance 10% of its cost
Depreciation for company accounts
| Year | Days | Opening | Depreciation | Closing |
|---|
Income-tax depreciation rates
| Block of assets | Rate on WDV |
|---|---|
| BuildingsResidential buildings (except hotels and boarding houses) | 5% |
| BuildingsOther buildings | 10% |
| BuildingsBuildings for a water supply or water treatment project under section 80-IA(4)(i) of the 1961 Act | 40% |
| BuildingsPurely temporary erections such as wooden structures | 40% |
| FurnitureFurniture and fittings, including electrical fittings (wiring, switches, sockets, fans) | 10% |
| Plant and machineryMachinery and plant — general | 15% |
| Plant and machineryMotor cars, other than those used in a hire business | 15% |
| Plant and machineryMotor buses, lorries and taxis used in a hire business | 30% |
| Plant and machineryAeroplanes and aero-engines | 40% |
| Plant and machineryMoulds used in rubber and plastic goods factories | 30% |
| Plant and machineryAir and water pollution control equipment; solid waste control and recycling systems | 40% |
| Plant and machineryMachinery used in the semiconductor industry | 30% |
| Plant and machineryLife-saving medical equipment (defibrillators, dialysers, MRI, ventilators and others listed) | 40% |
| Plant and machineryGlass or plastic containers used as refills | 40% |
| Plant and machineryComputers, including computer software | 40% |
| Plant and machineryMachinery for a water supply or water treatment project under section 80-IA(4)(i) | 40% |
| Plant and machinerySpecified items — wooden parts of artificial silk machinery, studio light bulbs, match frames, mine ropes and safety lamps, salt pans, flour and sugar mill rollers, rolling mill rolls | 40% |
| Plant and machineryEnergy-saving devices (special boilers, furnaces, waste heat recovery, co-generation, listed electrical equipment, burners) | 40% |
| Plant and machineryGas cylinders including valves and regulators; direct-fire glass melting furnaces | 40% |
| Plant and machineryMineral oil concerns — field operation plant (above and below ground) | 40% |
| Plant and machineryOil wells not covered above | 15% |
| Plant and machineryRenewable energy devices — solar, wind (installed on or after 1 April 2014), biogas, and machinery used to make them | 40% |
| Plant and machineryElectrically operated vehicles, battery or fuel-cell powered | 40% |
| Plant and machineryBooks owned by professionals, and books of lending libraries | 40% |
| ShipsOcean-going ships, dredgers, tugs, barges, wooden-hull fishing vessels | 20% |
| ShipsVessels on inland waters, including speed boats | 20% |
| Intangible assetsKnow-how, patents, copyrights, trademarks, licences, franchises and similar commercial rights | 25% |
These are the rates in Appendix I to the Income-tax Rules, 2026 (rule 25), for tax year 2026-27 onwards. The same rates applied under Appendix I to the Income-tax Rules, 1962 from assessment year 2018-19. Goodwill is not a depreciable asset.
Useful lives for company accounts
| Asset | Useful life | Extra-shift depreciation |
|---|---|---|
| BuildingsFactory building | 30 years | No |
| BuildingsBuilding (other than factory) — RCC frame structure | 60 years | No |
| BuildingsBuilding (other than factory) — other than RCC frame | 30 years | No |
| BuildingsFences, wells, tube wells | 5 years | No |
| BuildingsOther buildings, including temporary structures | 3 years | No |
| Roads and bridgesCarpeted roads — RCC | 10 years | No |
| Roads and bridgesCarpeted roads — other than RCC | 5 years | No |
| Roads and bridgesNon-carpeted roads | 3 years | No |
| Roads and bridgesBridges, culverts, bunders | 30 years | No |
| Plant and machineryPlant and machinery — general (not continuous process) | 15 years | Yes |
| Plant and machineryContinuous process plant | 25 years | No |
| Plant and machineryMedical — X-ray, diagnostic and electrotherapeutic equipment | 13 years | No |
| Plant and machineryMedical — other equipment | 15 years | No |
| Plant and machineryPharma and chemicals — reactors, distillation columns, vessels | 20 years | No |
| Plant and machineryTelecom towers, cables and optical fibre | 18 years | No |
| Plant and machineryWind power generation | 22 years | No |
| Plant and machineryEarth-moving equipment (civil construction) | 9 years | Yes |
| Plant and machineryCranes with capacity of more than 100 tons | 20 years | Yes |
| Plant and machineryCranes with capacity of less than 100 tons | 15 years | Yes |
| Furniture and fittingsFurniture and fittings — general | 10 years | No |
| Furniture and fittingsFurniture in hotels, restaurants, schools, colleges, libraries, cinemas, or let out on hire | 8 years | No |
| Motor vehiclesMotor cycles, scooters and mopeds | 10 years | No |
| Motor vehiclesBuses, lorries, cars and taxis used in a hire business | 6 years | No |
| Motor vehiclesBuses, lorries and cars not used in a hire business | 8 years | No |
| Motor vehiclesTractors, harvesting combines and heavy vehicles | 8 years | No |
| Motor vehiclesElectrically operated vehicles (battery or fuel-cell) | 8 years | No |
| Office and ITOffice equipment | 5 years | No |
| Office and ITComputers — end-user devices (desktops, laptops) | 3 years | No |
| Office and ITComputers — servers and networks | 6 years | No |
| Office and ITLaboratory equipment — general | 10 years | No |
| Office and ITLaboratory equipment — used in educational institutions | 5 years | No |
| Office and ITElectrical installations and equipment | 10 years | No |
| Office and ITHydraulic works, pipelines and sluices | 15 years | No |
| OthersAircraft or helicopters | 20 years | No |
| OthersRailway sidings, locomotives and rolling stock | 15 years | No |
Lives assume single-shift working. For assets where extra-shift depreciation is “Yes”, depreciation is 50% more for the period of double-shift use and 100% more for triple-shift use (Note 6). Assets marked “No” are NESD in Schedule II.
How it works
- Income-tax works on blocks, not single assets. Depreciation is a percentage of the written down value (WDV) of the whole block: opening WDV + assets bought − sale proceeds (section 33(3) of the Income-tax Act, 2025; rule 25 and Appendix I of the Income-tax Rules, 2026).
- Half rate for less than 180 days: an asset bought during the year and put to use for less than 180 days gets 50% of the rate in that year (section 33(4)). This calculator reduces sale proceeds from the opening WDV and full-year additions first, then from the half-rate additions.
- Additional depreciation: 20% of the cost of new plant and machinery for a manufacturer or a power company; 10% if used for less than 180 days, with the other 10% in the next year (section 33(8) and (9)). It is not available for office appliances, road vehicles, used machinery or machinery in an office or residence, and not under the new regime of section 202.
- 40% cap: a company, co-operative society or individual opting for a concessional regime cannot claim more than 40% on any block (rule 25(2)) — every current block rate is already 40% or less.
- When the block ends: if sale proceeds are more than the WDV plus additions, or all assets of the block are sold, the result is a short-term capital gain or loss (section 74 of the 2025 Act; section 50 of the 1961 Act), and no depreciation is allowed for that block.
- Companies Act, Schedule II: companies depreciate each asset over its useful life. SLM charges (cost − residual value) ÷ useful life each year. WDV uses the rate 1 − (residual ÷ cost)1/life — 45.07% for a 5-year asset with a 5% residual value. Additions are depreciated pro rata from the date put to use (Note 2), and the last year is adjusted so that the book value equals the residual value at the end of the useful life.
Common questions
What is the depreciation rate on computers and laptops?
40% of WDV under the Income-tax law (Appendix I). In company accounts under Schedule II, end-user devices such as laptops and desktops have a useful life of 3 years, and servers and networks 6 years.
What is the 180-day rule for depreciation?
If an asset is bought and put to use for less than 180 days in the year it is bought, only half the normal rate is allowed in that year. The full rate applies from the next year.
What is the depreciation rate on a car?
15% for a car not used in a hire business, and 30% for buses, lorries and taxis used in a hire business. Electrically operated vehicles are listed at 40%. In company accounts, cars have a useful life of 8 years (6 years if used in a hire business).
Can I claim additional depreciation under the new tax regime?
No. Section 202(2)(a)(vi) of the Income-tax Act, 2025 does not allow additional depreciation under section 33(8) to a person in the new regime. Normal depreciation is still allowed.
Is goodwill depreciable?
No. Goodwill of a business or profession is not a depreciable asset. Other intangible assets — know-how, patents, copyrights, trademarks, licences and franchises — get 25%.
- Income-tax Rules, 2026 — Notification 22/2026, G.S.R. 198(E), rule 25 and Appendix I (Income Tax Department)
- Section 33, Income-tax Act, 2025 — deduction for depreciation (Income Tax Department)
- Section 202, Income-tax Act, 2025 — new tax regime (Income Tax Department)
- Depreciation rates, and Schedule II to the Companies Act, 2013 (Income Tax Department)
- Income-tax Rules, 1962 — New Appendix I (Income Tax Department)
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