Income-tax depreciation calculator
Section 32 depreciation for one block of assets for one previous year: additions split by the 180-day rule, sales, additional depreciation and section 50, with every step of the working.
- 15%
- ₹1,80,000
- ₹10,70,000
- Not applicable
- Opening WDV₹0
- Additions, 180 days or more+₹0
- Additions, under 180 days+₹0
- Sale proceeds−₹0
- WDV before depreciation₹0
- Depreciation @ 15%−₹0
- Depreciation @ 7.5% (half rate)−₹0
- Closing WDV₹0
Working, step by step
| Step | Amount |
|---|---|
| Opening WDV of the block | ₹10,00,000.00 |
| Add: additions put to use for 180 days or more | ₹2,00,000.00 |
| Add: additions put to use for less than 180 days | ₹1,00,000.00 |
| Less: sale proceeds / moneys payable (incl. scrap value) | (₹50,000.00) |
| WDV before depreciation | ₹12,50,000.00 |
| Depreciation @ 15% on ₹11,50,000 | ₹1,72,500.00 |
| Depreciation @ 7.5% (half rate) on ₹1,00,000 | ₹7,500.00 |
| Total depreciation allowable | ₹1,80,000.00 |
| Closing WDV of the block | ₹10,70,000.00 |
Indicative calculations. Confirm with your Chartered Accountant before filing.
Assumptions used
- Rates: Income-tax Rules, Appendix I as currently in force (reference data version 2026.09.1). Older rates and the 2019-20 temporary vehicle rates are not offered.
- WDV before depreciation = opening WDV + additions − sale proceeds (s.43(6)). Half the rate applies to additions put to use for less than 180 days in the year (s.32(1), second proviso).
- If the sale proceeds exceed opening WDV + full-rate additions, the excess is set off against the half-rate additions first. This ordering is common practice, not written in the Act.
- If the block ceases, or the sale proceeds exceed the whole block, no depreciation is allowed and section 50 applies. Transfer expenses are not deducted here.
- Additional depreciation is 20% of the actual cost of eligible new plant (10% if used less than 180 days, the balance next year). It is not available under sections 115BAA, 115BAB or 115BAC.
- The Income-tax Act, 2025 replaces the 1961 Act from tax year 2026-27; section numbers change and rates should be re-confirmed for that year. Amounts are rounded to the paisa.
Frequently asked questions
What is the 180-day rule?
If an asset is acquired and put to use for less than 180 days in the previous year, only half the normal rate is allowed on it that year (second proviso to s.32(1)). Count the days from the date put to use to 31 March, both days included. In a normal year, assets put to use on or before 3 October get the full rate.
Who can claim additional depreciation u/s 32(1)(iia)?
An assessee engaged in manufacture or production of any article or thing, or in generation, transmission or distribution of power, on new plant and machinery. Ships, aircraft, second-hand machinery, office appliances, road transport vehicles and plant installed in offices or residences are excluded. Companies that opt for s.115BAA cannot claim it.
What happens when the sale price is more than the block value?
No depreciation is allowed for the year and the excess of the sale proceeds over opening WDV plus additions is a short-term capital gain under section 50(1), even for long-held assets. The block continues with a nil value.
What if every asset in the block is sold?
When the block ceases to exist, section 50(2) treats the difference between the sale proceeds and the opening WDV plus additions as a short-term capital gain or loss, and no depreciation is allowed for that year.
Is this the same as Companies Act depreciation?
No. Accounts use Schedule II useful lives asset by asset, with a residual value and day-based pro-rata. Use the Schedule II depreciation calculator for the books of account; the difference feeds deferred tax.
Learn more in our guides
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