Fixed Asset Accounting Tool
Asset Depreciation Calculator: SLM & WDV Methods
Calculate accurate annual depreciation expense for machinery, computers, vehicles, and office equipment. Compare Straight Line Method (SLM) vs Written Down Value (WDV) compliant with Companies Act & Income Tax Rules.
Asset & Depreciation Parameters
Companies Act 2013 Compliant
SLM applies equal expense yearly; WDV charges higher depreciation in early years.
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Includes purchase cost, transport, installation and transit insurance.
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Estimated sale value at the end of useful life (usually up to 5% of cost under Companies Act).
Computers (3 yrs), Plant & Machinery (15 yrs), Vehicles (8 yrs), Furniture (10 yrs).
Year 1 Depreciation
SLM Method
Year 1 Depreciation Expense
₹95,000
Annual Depreciation Rate: 19.00%
| Total Depreciable Amount: | ₹4,75,000 |
| Residual / Scrap Value: | ₹25,000 |
| Book Value after Year 1: | ₹4,05,000 |
| Tax Saving (at 25% Corp Tax): | ₹23,750 / yr |
Multi-Year Depreciation Schedule
| Year | Opening Book Value | Depreciation Expense | Accumulated Depreciation | Closing Book Value |
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SLM vs WDV: Depreciation Formulas
1. Straight Line Method (SLM)
Equal deduction charged every year throughout the asset's lifespan:
Annual Dep = (Asset Cost − Salvage Value) / Useful Life
Dep Rate % = (Annual Dep / Asset Cost) × 100
2. Written Down Value (WDV)
Higher deduction charged in initial years as book value decreases:
Rate % = [1 − (Salvage / Cost)^(1/Life)] × 100
Dep = Opening Book Value × Rate %
Which method is mandatory under Indian Income Tax Act 1961?
Under Section 32 of the Indian Income Tax Act 1961, the Written Down Value (WDV) method is mandatory for calculating tax depreciation on a "block of assets" (with the exception of power generating units). Companies Act 2013 allows either SLM or WDV for statutory financial reporting.
Effortless Accounting & Fixed Asset Management
Record capital purchases, create GST expense vouchers, and generate balance sheets with automatic asset write-offs.
