Depreciation as per Income Tax

Depreciation as per Companies Act

We follow

WDV Method

We can follow either

SLM Method


WDV Method

Concept of Block of Assets

Depreciation on similar type of assets calculated in one line

No Concept of Block of Assets

Depreciation on all assets in different line


Concept of 180 days

If asset used for 180 days or more, then full depreciation

If less than 180 days,then half depreciation

No Concept of 180 days

Depreciation on basis of number of days

Sale of Assets

if block  exist having some value depreciation  will be provided on balance value


if block ceases to exist: Short term capital gain or loss will be calculated and no depreciation will be calculated for that year

Sale of Assets

In case Assets sold, depreciation will be computed till the date asset is sold

Also Profit or loss on Sale of Asets will also be computed


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.