← All tools
Audit & Compliance
Depreciation Schedule Builder
Build a dual-basis depreciation schedule for your private limited company — SLM under the Companies Act 2013 Schedule II for your books, and WDV under the Income Tax Act s.32 for your IT return — pro-rated for the year of acquisition with the 180-day half-rate rule.
Thresholds as at June 2026. Verify with MCA portal and legal counsel before acting.Last updated: 5 August 2026.
Schedule II vs IT Act — reference rates
Useful lives under the Companies Act 2013 Schedule II drive your book depreciation; the WDV rates from IT Rule 5 + Appendix I drive your tax depreciation. The two rarely match — that mismatch is what this builder lays out.
| Asset Class | Schedule II Useful Life | IT Act WDV Rate | Statute |
|---|---|---|---|
| Buildings (other than factory) | 30 years | 5% | Companies Act 2013 Schedule II Part A + IT Rule 5 App I |
| Factory buildings | 30 years | 10% | Schedule II + Rule 5 |
| Plant and machinery (general) | 15 years | 15% | Schedule II + Rule 5 |
| Plant and machinery (continuous process) | 25 years | 15% | Schedule II |
| Computers and data processing units | 3 years | 40% | Schedule II Part C + Rule 5 |
| Furniture and fittings | 10 years | 10% | Schedule II |
| Motor vehicles | 8 years | 15% | Schedule II |
| Electric fittings | 10 years | 10% | Schedule II |
| Intangibles (goodwill, patents, know-how) | 10 years | 25% | Schedule II Part B + Rule 5 |
| Office equipment | 5 years | 15% | Schedule II + Rule 5 |
Your assets
Asset #1
Dual-basis schedule
| Asset | Opening WDV (IT) | Additions | Depreciation (IT) | Closing WDV (IT) | Schedule II Charge | Difference (DTL/DTA) |
|---|---|---|---|---|---|---|
| Untitled assetBuildings (other than factory) | — | — | — | — | — | — |
| Total | ₹0 | ₹0 | ₹0 | ₹0 | ₹0 | — |
Total Schedule II charge (books)
₹0
Total depreciation (IT)
₹0
Net timing difference
₹0IT − Schedule II; nil
Reading the difference column. When tax depreciation (WDV) exceeds the book charge (SLM), the company pays less tax today but will pay more as the WDV runs out — a deferred tax liability (DTL). When the book charge is higher, the reverse — a deferred tax asset (DTA). These are timing differences recognised under Ind AS 12 / AS 22. The exact DTA/DTL amount depends on the tax rate that applies when the difference reverses — consult a CA before booking any deferred tax entry.
How it works
- Books — Companies Act 2013 Schedule II. Depreciation is provided on the straight-line method over the asset’s useful life (Part A/C of Schedule II), with the residual value capped at 5% of cost (Schedule II para 4). The annual charge is (cost − residual) ÷ useful life, pro-rated from the date of use in the year of acquisition.
- Tax — Income-tax Act s.32. Depreciation is allowed on the written-down value (WDV) method at the rates in Rule 5 + Appendix I of the IT Rules, computed on a block of assets — opening WDV, plus additions, minus sale proceeds credited to the block in the year of sale.
- The 180-day half-rate rule. If a new asset is put to use for less than 180 days in the year of acquisition, depreciation is restricted to 50% of the normal rate for that year (proviso to s.32(1)). The builder applies this automatically to assets acquired after mid-October in the selected FY.
- Timing differences and deferred tax. Because books use SLM over the useful life and tax uses WDV, the two diverge every year and converge over the asset’s life. The difference column flags whether the divergence points to a DTL or a DTA under Ind AS 12 / AS 22.
- Disposals. This builder models a single FY per asset and does not take sale proceeds. Under the block method, sale proceeds are credited to the block; a shortfall gives terminal depreciation and an excess (within limits) a balancing charge under s.32.
Need professional help? talk to a CA
Chat with us on WhatsApp