CalculatorDEPRECIATION CALCULATOR AS PER INCOME TAX ACTRate of Depreciation as per IT15%10%10%25%60%< == EditPARTICULARBLOCK 1BLOCK 2BLOCK 3BLOCK 4BLOCK 5Opening wdvAsset 01< == EditAsset 02< == EditAsset 03< == EditTotal of Opening Value00000Addition :Purchases during the yearAfter 3rd Oct ( < 180 days )< == EditBefore 3rd Oct ( > 180 days )< == Edit00000Deletion :Sale of Asset during the year< == Edit( At any time during the year )Closing Value for Depreciation00000Result = Short Term Capital Gain00000Break up of Value for DepreciationOpening Value00000Addition value00000Closing Value00000Depreciation on opening00000Depreciation on Additions00000After 3rd Oct ( < 180 days )00000Before 3rd Oct ( > 180 days )00000TOTAL DEPRECIATION ===>00000Supporting working for aboveAdjusted in Before 3rd oct value00000Adjusted Depreciation00000Adjusted Depreciation00000

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GuidlinesDEPRECIATIONBlock of assets means group of assets, comprising of Tangible & Intangible assetsExample :Tangible Assets :- Building, Furniture, Plant & Machinery etcIntangible Assets :- Patents, Know-How, Copyright, Trademark etcGroup wide classification.Building includes roads, bridges, well , tubewell & Hotel-Hospital-Theater Building.Machinery which is directly connected with production or manufacturing ofa product or article.Furniture includes assets used for convenience & decoration.Plant include ship, vehicles, books, scientific appartus & surgicle equipments.Actual Cost of the asset.Total cost price of the asset ( Purchase price )XXXLess :Subsidy or Grant received or Cenvat credit receivable( XX )Add :Interest on Loan borrowed for acquiring the asset -XXpayable upto commencement of production.Other Expenses includes Installation chgs, frieght,XXInsurance, Loading & Unloading Charges.XXXOn what amount depreciation is to be charged ?ExampleOpening W.D.V. of the Block of AssetXXX180Add :Addition during the yearXXX40XXXX220Less :Sale of Asset/ Assets( XX )(20)W.D.V. for DepreciationXXX200Depreciation is to be chargeable on above value@ 10%20Note :Addition during the year - If asset is put to use for Less than 180 daysthen only 50% rate is to be applied. This 180 days condition will beApplicable only at the beginning period.Refer the below example for the better understanding.Block of AssetsMachionery @ 15%Furniture @ 10%Opening WDVMach. A300000Opening WDVFurnt. A100000Mach. B350000Furnt. B80000650000180000Additions :Additions :on 15th octMach. C400000on 15th octFurnt. C500001050000230000Less : Asset soldLess : Asset sold( Any time During the year )Mach. A(450000)( Any time During the year )Furnt. A(70000)600000160000Depreciation calculation :Depreciation calculation :On Mach. ANilOn closing wdv Rs 16000016000On Mach. B ( adjusted value )30000Note : All assets are qualified( 650000 - 450000 ) x 15%for depreciation as hereOn Mach. C (Less than 180 days)30000No exhaustion in value( 400000 x 15% x 50% )Furnt. AOpening100000Total Depreciation60000sale70000Balance30000Note : Adjusted valueOpening wdv of Mach.A300000Less : Sold during the year400000Surplus amt adj in mach. B(100000)Opening wdv of Mach.B350000Value for Depreciation =>250000

Capital GainCalculation of Capital Gains on sale of AssetsWhen all the items in the block of assets are sold then no depreciationwill be applicable. Result will be Short Term Capital Gain / Loss.If Sale Consideration > ( Opening value + Addition )then no depreciation only Short Term Capital GainAlso if block ceased to exist then No depreciaton only Short Term Capital Gain / LossDepreciation is to be chargeable only when some value left in BlockExample 1Opening WDV900000Machine - A400000Machine - B300000Machine - C200000Additions :Machine - D in Dec4000001300000Less :Sale of Machines ( A + B )(950000)350000Depreciation on Balance value of Rs 350,00026250Sale value > openingGain of Rs50000Adjusted against Machine - D Value= 400000 - 50000Depreciation is applicable as Still other asset exist in the blockHence in above example no Capital GainIf in the above example sale consideration was Rs 15,00,000 /-then result would be short term capital gain of Rs 2,00,000 /-Example 2( Only single asset exist )MachineryFurnitureOpening WDV400000300000Addition during the year22000050000620000350000Sale during the year(750000)(300000)Closing Balance(130000)50000ResultSTC LossSTC GainEnhanced Depreciation :Enhanced Depreciation is available @ 20% on New Machinery purchased after31-03-2005.Above depreciation is addition to the Normal depreciation only ifassessee is engaged in the manufacture or processing or production of articles.Rate of Depreciation as per Income tax Actas per companies actBuildingResidential5%5%Commercial10%10%Furniture10%WDV - 18.10%Machinery & PlantWDV - 13.91%Motor Bus, Lorries, Taxies15%WDV - 40%used in hire businessComputer (with Software)60%WDV - 40%Books referred by profes -100%NILbeing annual publicationsBooks other than above60%NILIntangible assets - All25%NIL