A depreciation calculator for the Companies Act, the Income Tax Act and MACRS
This depreciation calculator works out depreciation three ways: as per the Companies Act, 2013 (Schedule II useful lives, straight line or written down value), as per the Income-tax Act (block of assets at the prescribed rate, with half the rate for assets used under 180 days) and under the US MACRS tables with section 179 and bonus depreciation. Pick the rule set, enter the asset and read the full schedule year by year.
It suits accountants preparing books and tax computations, business owners checking a fixed-asset register, and anyone valuing equipment or a vehicle. The rules were checked on 24 October 2026 and the sources are listed under the tool. It is an estimate, not tax or accounting advice.
How to use the Depreciation Calculator (Companies Act, Income Tax, MACRS)
- Choose Companies Act, Income Tax Act or MACRS at the top.
- Companies Act: pick the asset class (the useful life fills in), enter the cost, residual value, date put to use and SLM or WDV.
- Income Tax Act: pick the block (the rate fills in and stays editable), enter the opening WDV, additions split by the 180-day rule and any sale proceeds.
- MACRS: enter the cost, business-use share, recovery period, date placed in service, convention, section 179 and bonus.
- Read the first-year figure and the schedule; download it as CSV or copy it.
Depreciation Calculator (Companies Act, Income Tax, MACRS) features
Schedule II useful lives
Plant, buildings, vehicles, computers, furniture and more, with day-based pro rata in the first and last year.
SLM and WDV
WDV rate worked out from the useful life and residual value: 1 − (residual ÷ cost)^(1/life).
Block of assets
Full rate and half rate in one working, sale proceeds set off, short-term capital gain when the block turns negative.
Additional depreciation
20% on new plant and machinery, or 10% now and 10% next year when used under 180 days.
IRS tables built in
MACRS Tables A-1 to A-5, mid-month straight line for real property, section 179 limits for 2025 and 2026.
Depreciation rate chart as per the Companies Act 2013
Schedule II gives useful lives, not rates. The equivalent rates below assume a 5% residual value; SLM = 95% ÷ life, WDV = 1 − 0.05^(1/life).
| Asset (Part C) | Useful life | SLM rate | WDV rate |
|---|---|---|---|
| Plant and machinery — general | 15 years | 6.33% | 18.10% |
| Continuous process plant | 25 years | 3.80% | 11.29% |
| Factory building | 30 years | 3.17% | 9.50% |
| Building (RCC frame, not factory) | 60 years | 1.58% | 4.87% |
| Furniture and fittings | 10 years | 9.50% | 25.89% |
| Motor car (not for hire) | 8 years | 11.88% | 31.23% |
| Office equipment | 5 years | 19.00% | 45.07% |
| Computers — servers / end-user | 6 / 3 years | 15.83% / 31.67% | 39.30% / 63.16% |
Depreciation as per the Income Tax Act
Tax depreciation is charged on the written down value of each block of assets at the rate prescribed for it. Under section 33 of the Income-tax Act, 2025 (in force from 1 April 2026, replacing section 32 of the 1961 Act), an asset acquired in the tax year and put to use for less than 180 days gets only half the rate in that year. Common rates: residential buildings 5%, other buildings and furniture 10%, general plant and machinery and cars 15%, hire vehicles 30%, computers and software 40%, intangibles 25%. These are the Appendix I rates in force since AY 2018-19; the tool keeps the rate editable so you can match the Income-tax Rules, 2026.
Worked example: opening WDV ₹10 lakh, additions of ₹2 lakh used over 180 days and ₹4 lakh used for less, ₹1 lakh received for a machine sold. Depreciation = (10 + 2 − 1) lakh × 15% + ₹4 lakh × 7.5% = ₹1,65,000 + ₹30,000 = ₹1,95,000; closing WDV ₹13,05,000.
MACRS in brief
MACRS multiplies the depreciable basis by the IRS percentage for each year. Most equipment uses the half-year convention; if more than 40% of the year’s purchases were placed in service in the last quarter, every item uses the mid-quarter tables. Section 179 and the special allowance come off the basis first. Under P.L. 119-21 qualifying property acquired after 19 January 2025 gets a 100% special allowance unless you elect out (or elect 40%). For vehicles, see also the car depreciation calculator, which estimates market value rather than tax deductions.
Depreciation Calculator (Companies Act, Income Tax, MACRS) FAQ
How do I calculate depreciation as per the Companies Act?
Take cost minus residual value (up to 5%) and spread it over the Schedule II useful life — equally each year for SLM, or at a fixed percentage of the opening carrying amount for WDV — pro rata for the days the asset was used in the first and last year.
What is the 180-day rule in income tax depreciation?
If an asset is acquired in a tax year and put to use for less than 180 days in that year, only 50% of the normal rate is allowed that year. The full rate applies from the next year.
Can I use this as a depreciation calculator as per the Income Tax Act 1961?
Yes. The block method and rates are the same for tax year 2025-26 under the 1961 Act (section 32); choose that year and the working is unchanged.
Which MACRS table do I use?
Table A-1 for the half-year convention, Tables A-2 to A-5 for the mid-quarter convention by the quarter placed in service, and the mid-month straight-line tables for 27.5- and 39-year real property.
Why does the WDV method need a residual value?
The WDV rate is derived from residual ÷ cost; with a residual of zero no fixed rate can bring the value to zero, so enter the 5% Schedule II allows or your own estimate.
Is this depreciation calculator free?
Yes. It runs in your browser with no sign-up, and nothing you type is sent anywhere.