Вы находитесь на странице: 1из 10

DEPRECIATION CALCULATOR AS PER INCOME TAX ACT

Rate of Depreciation as per IT


PARTICULAR
Opening wdv
Asset 01
Asset 02
Asset 03
Total of Opening Value
Addition :
Purchases during the year
After 3rd Oct ( < 180 days )
Before 3rd Oct ( > 180 days )

15%
10%
10%
BLOCK 1
BLOCK 2
BLOCK 3

0
0

0
0

0
0

Opening Value
Addition value
Closing Value

0
0
0

0
0
0

0
0
0

Depreciation on opening
Depreciation on Additions
After 3rd Oct ( < 180 days )
Before 3rd Oct ( > 180 days )

0
0
0
0

0
0
0
0

0
0
0
0

TOTAL DEPRECIATION ===>

0
0
0

0
0
0

0
0
0

Deletion :
Sale of Asset during the year
( At any time during the year )

Closing Value for Depreciation


Result = Short Term Capital Gain
Break up of Value for Depreciation

Supporting working for above


Adjusted in Before 3rd oct value

Adjusted Depreciation
Adjusted Depreciation

25%
60%
BLOCK 4
BLOCK 5

< == Edit

< == Edit
< == Edit
< == Edit

< == Edit
< == Edit

0
< == Edit

0
0

0
0

0
0
0

0
0
0

0
0
0
0

0
0
0
0

0
0
0

0
0
0

DEPRECIATION
Block of assets means group of assets, comprising of Tangible & Intangible assets
Example : Tangible Assets :- Building, Furniture, Plant & Machinery etc
Intangible Assets :- Patents, Know-How, Copyright, Trademark etc
Group wide classification.
Building includes roads, bridges, well , tubewell & Hotel-Hospital-Theater Building.
Machinery which is directly connected with production or manufacturing of
a 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 )
Less :
Subsidy or Grant received or Cenvat credit receivable
Add :
Interest on Loan borrowed for acquiring the asset payable upto commencement of production.
Other Expenses includes Installation chgs, frieght,
Insurance, Loading & Unloading Charges.

On what amount depreciation is to be charged ?


Opening W.D.V. of the Block of Asset
Add :
Addition during the year

XXX
XXX
XXXX
( XX )
XXX
@ 10%

Less :

Sale of Asset/ Assets


W.D.V. for Depreciation
Depreciation is to be chargeable on above value

Note :

Addition during the year - If asset is put to use for Less than 180 days
then only 50% rate is to be applied. This 180 days condition will be
Applicable only at the beginning period.

Refer the below example for the better understanding.


Block of Assets
Machionery @ 15%
Opening WDV
Mach. A
300000
Mach. B
350000
650000
Additions :
on 15th oct Mach. C
400000
1050000
Less : Asset sold
Mach. A
(450000)
( Any time During the year )
600000
Depreciation calculation :
On Mach. A
Nil

Opening WDV

Additions :

Less : Asset sold


( Any time During the year )

Depreciation calculat
On closing wdv Rs 16

On Mach. B ( adjusted value )


( 650000 - 450000 ) x 15%
On Mach. C (Less than 180 days)
( 400000 x 15% x 50% )
Total Depreciation
Note : Adjusted value
Opening wdv of Mach.A
Less : Sold during the year
Surplus amt adj in mach. B
Opening wdv of Mach.B
Value for Depreciation =>

30000
30000
60000

300000
400000
(100000)
350000
250000

Note : All assets are


for deprecia
No exhausti
Furnt. A

angible assets

heater Building.

quipments.

XXX
( XX )
XX
XX
XXX
Example
180
40
220
(20)
200
20

han 180 days


tion will be

Opening WDV

Furnt. A
Furnt. B

Additions :
on 15th oFurnt. C

Furniture @ 10%
100000
80000
180000
50000
230000

Less : Asset sold

Any time During the year )

Furnt. A

Depreciation calculation :
On closing wdv Rs 160000

(70000)
160000
16000

Note : All assets are qualified


for depreciation as here
No exhaustion in value
100000
Opening
sale
70000
Balance
30000

Calculation of Capital Gains on sale of Assets


When all the items in the block of assets are sold then no depreciation
will be applicable. Result will be Short Term Capital Gain / Loss.
If Sale Consideration > ( Opening value + Addition )
then no depreciation only Short Term Capital Gain
Also if block ceased to exist then No depreciaton only Short Term Capital Gain / Loss
Depreciation is to be chargeable only when some value left in Block
Example 1
Opening WDV
900000
Machine - A
400000
Machine - B
300000
Machine - C
200000
Additions :

Machine - D in Dec

Less :

Sale of Machines ( A + B )

400000
1300000
(950000)
350000
26250

Depreciation on Balance value of Rs 350,000


Sale value > opening
Gain of Rs
50000
Adjusted against Machine - D Value
= 400000 - 50000
Depreciation is applicable as Still other asset exist in the block
Hence in above example no Capital Gain

If 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 )
Opening WDV
Addition during the year

Machinery
400000
220000
620000
(750000)
(130000)
STC Loss

Sale during the year


Closing Balance
Result

Enhanced Depreciation :
Enhanced Depreciation is available @ 20% on New Machinery purchased after
31-03-2005. Above depreciation is addition to the Normal depreciation only if
assessee is engaged in the manufacture or processing or production of articles.
Rate of Depreciation as per Income tax Act
Building
Residential
Commercial
Furniture

as per companies act


5%
10%
10%

Machinery & Plant


Motor Bus, Lorries, Taxies
used in hire business
Computer (with Software)
Books referred by profes being annual publications
Books other than above
Intangible assets - All

15%
60%
100%
60%
25%

depreciation

ort Term Capital Gain / Loss

ft in Block

Furniture
300000
50000
350000
(300000)
50000
STC Gain

nery purchased after


l depreciation only if
production of articles.

as per companies act


5%
10%
WDV - 18.10%

WDV - 13.91%
WDV - 40%
WDV - 40%
NIL
NIL
NIL