Costing & FinanceFree calculatorPDF, Excel, Word exportManufacturingIndia

India Plant and Machinery WDV Depreciation Calculator

Tax depreciation in India is claimed on blocks of assets using the written down value method. This tool shows how a machine's value decays at the block rate and what cash tax it saves.

Your numbers

Machine acquisition cost

Purchase price plus installation, excluding GST credit claimed.

Depreciation block rate

First year usage

Years since purchase

5 years

Effective tax rate

Your results

Written down value after the period

Rs 2,414,279

Total depreciation claimed

Rs 2,585,721

Year 1 depreciation

Rs 375,000

Cumulative tax shield

Rs 650,826

Share of cost still undepreciated

48.3%

Illustrative. Additional depreciation, block-level pooling, sale proceeds and the latest tax provisions can change actual claims. Verify with your chartered accountant.

Save results:

Written down value vs years since purchase

Sweeps Years since purchase from 1 to 20, holding your other inputs fixed.

Fixed asset register reconciliation

Optional help matching ERP asset books to the tax depreciation schedule.

Optional. The tool and every export work without this. No spam.

How to use it

Enter the cost, choose the block rate and whether the machine was used for 180 days in the first year. Then set the number of years to see written down value and total depreciation. The chart plots the remaining value so you can judge when a block has little left to claim and when replacement or upgrade makes sense.

Use cost net of GST credit that is claimed
Pick the correct block, not just the asset type
Compare with the books depreciation in your ERP

The WDV method

Depreciation each year is the rate applied to the opening written down value of the block. In the first year, assets used for fewer than 180 days get half the normal rate. Closing value after n years is (cost minus year one depreciation) times (1 minus rate) raised to n minus 1. Note that the tool treats the machine alone, whereas the law pools assets in a block.

Worked example

A Rs 50 lakh CNC machine at 15 percent, bought mid-year and used less than 180 days, gets Rs 3.75 lakh in year one. After five years the written down value is 46.25 lakh x 0.85 to the power 4, about Rs 24.14 lakh. Total depreciation is Rs 25.86 lakh, and at a 25.17 percent tax rate the shield is about Rs 6.51 lakh.

Common mistakes

Treating tax depreciation as the same as books depreciation under the Companies Act creates deferred tax confusion. Ignoring the half-rate rule overstates year one. Another error is forgetting that sale of a machine reduces the block value rather than creating a profit directly. Track both schedules separately in the ERP fixed asset module.

Frequently Asked Questions

What is the general depreciation rate for machinery?

General plant and machinery has been 15 percent on written down value. Special categories such as certain energy saving or pollution control equipment, and computers, carry higher rates. Confirm the block rate in the rules in force for your assessment year.

What is the 180-day rule?

If an asset is put to use for fewer than 180 days in the year of acquisition, only half the normal depreciation rate is allowed in that year. The unclaimed balance is not lost; it stays in the block value.

Is WDV different from straight line?

Yes. Straight line writes off equal amounts each year, whereas WDV applies a percentage to the declining balance, giving larger deductions early. Tax law in India uses WDV for most blocks; companies often use straight line in books.

Does GST affect the cost?

If input tax credit on the machine is claimed, GST is not part of the capitalised cost for depreciation. If credit is blocked or not claimed, the tax becomes part of cost. Follow your accountant's treatment.

We can help reconcile ERP fixed asset registers against the tax block schedule using read-only reports.

Talk to an Expert Explore More Free Tools

Related Tools

Country & Tax

More Costing & Finance tools

See all

Back to All Tools