SLM Depreciation = (Cost − Salvage) ÷ Useful Life WDV Depreciation = Opening Book Value × WDV Rate % WDV Book Value = Previous Book Value − WDV Depreciation
SLM = (5L−50K)÷10 = ₹45,000/yr WDV Year 1 = 5L×15% = ₹75,000 | Book value after Yr1 = ₹4,25,000
When to Use This Calculator
Calculate depreciation for IT returns
Prepare fixed asset schedule for balance sheet
Compare SLM vs WDV tax impact
Calculate book value for asset disposal
Plan capital expenditure and depreciation budgets
Frequently Asked Questions
Depreciation is the systematic reduction in the book value of an asset over its useful life due to wear, tear, and obsolescence.
Straight Line Method: same depreciation amount every year = (Cost − Salvage Value) ÷ Useful Life.
Written Down Value: depreciation applied on the remaining book value each year. More depreciation in early years, less later. Prescribed by the Income Tax Act.
The Income Tax Act prescribes WDV (Written Down Value) method with specific block-wise rates for different asset categories.
Under the Companies Act, you can choose either. Under Income Tax, WDV is mandatory. Once chosen for Companies Act, switching requires shareholder approval.
