Depreciation Calculator

Accountants and used-car buyers both need a written-down value. This page uses declining balance: WDV = cost × (1 − rate)^years. A ₹5 lakh asset at 15% for 5 years sits at about ₹2,21,853, with about ₹2,78,147 already depreciated in the model. Companies Act useful lives and Income-tax block-of-assets rates may differ from 15%.

The cash-flow question

A CA intern in Kolkata and a founder in Jaipur selling a 5-year-old CNC machine need a teaching WDV before they open Excel. IndiaKit does not claim this 15% is the IT Act rate for that block. Confirm rates in the Income-tax Rules and your depreciation policy.

The maths on this page

WDV = cost × (1 − r)^n. Defaults: ₹5,00,000, 15%, 5 years → ≈ ₹2,21,853. Straight-line would subtract 15% of original cost each year instead; that is not this engine.

Half-year conventions, 180-day rules, and additional depreciation for manufacturing are omitted.

For cars, insurers use IDV, not this WDV. Do not mix the two in a claim.

₹5 lakh machine, 15%, five years, Jaipur

A Jaipur workshop bought a machine for ₹5,00,000. After five years at a 15% declining-balance teaching rate, WDV is about ₹2.22 lakh. The buyer still asks for the tax block’s actual rate and the maintenance log.

What a bank still has to confirm

Declining balance only. 15% is an input, not a certified IT Act rate for your asset class. Indicative. Not a Schedule II useful-life engine.

Common questions

Is 15% the Income-tax rate for plant and machinery?

Some blocks have used 15%; others differ, and rates change. Read the current Income-tax depreciation schedule. This default is a teaching 15%.

Can I switch to straight line?

Not on this page. Straight line would be cost × rate × years, capped at cost, a different identity.

Does GST input credit change the cost base?

Often the depreciable cost is net of ITC when ITC was taken. Type the accounting cost your books use.