All Calculators
Sec 32 & Sch II Co. ActCorporate & Business TaxationAct No. 30 of 2025 Ready

Depreciation & Companies Act Multi-Shift Engine

Dual calculation of statutory WDV depreciation under Section 32 / Section 33 block of assets vs. Useful Life SLM under Schedule II of Companies Act 2013 with 180-day put-to-use rules, 20% Additional Depreciation, and Ind AS 12 Deferred Tax (DTA/DTL).

Governing Authority: Section 32 of Income-tax Act, 1961 / Section 33 Table of Income-tax Act, 2025 & Schedule II of Companies Act, 2013
Standard Corporate Asset Profiles & Scenarios
1. Statutory Asset Block SelectionRate: 15% WDV
Factory equipment, production lines, general industrial machinerySection 33 Table (Plant & Machinery @ 15%)
2. Asset Pool Movement & Additions during Financial Year
₹25,00,000
Full 15%
Eligible for 100% of prescribed depreciation
Half 7.5%
Proviso to Section 33: 50% rate applies
₹2,00,000
Statutory Assessment

Tax Depreciation Result

Section 33
Total Tax Depreciation Claimable
₹7,12,500
Closing WDV for Next FY: ₹28,87,500
Net Depreciable BaseOpening + Additions – Disposals
₹36,00,000
Normal Dep (≥ 180 Days @ 15%)Full statutory rate
₹4,65,000
Normal Dep (< 180 Days @ 7.5%)50% half-year rate
₹37,500
Additional Dep (20% on New P&M)20% full / 10% half on new P&M
₹2,10,000
C/F Additional Dep to Next FY:₹50,000

Companies Act & Deferred Tax (Ind AS 12)

Companies Act SLM DepSchedule II (Useful Life: 15 yrs)
₹2,40,667
Tax Depreciation (Sec 33)Allowable in Tax Return
₹7,12,500
Timing DifferenceTax Dep minus Book Dep
₹4,71,833
Deferred Tax Liability (DTL)At effective corporate tax rate of 25.17%
₹1,18,760

Chartered Accountant Statutory Advisory & Compliance Guidelines (Act 2025)

Section 33 Proviso (< 180 Days)

When an asset is acquired during the financial year and put to use for less than 180 days (on or after 4th October), depreciation is restricted to 50% of the prescribed rate for that initial tax year.

Additional Depreciation Carry Forward

If new plant & machinery is put to use for < 180 days and receives 10% additional depreciation, the balance 10% is eligible in the immediately succeeding financial year.

Section 50 Deemed Capital Gains

Under Section 50, if the net sale proceeds of assets in a block exceed the opening WDV plus additions, the resulting surplus is treated as Short Term Capital Gain regardless of the holding period.

Companies Act 2013 Useful Life

Under Schedule II of Companies Act 2013, financial statements must charge depreciation based on technical useful life with a maximum 5% residual value, leading to timing differences vs tax WDV.

Ind AS 12 / AS 22 Deferred Tax

When Tax Depreciation exceeds Book Depreciation, a Deferred Tax Liability (DTL) arises. Conversely, when Book Depreciation exceeds Tax Depreciation, a Deferred Tax Asset (DTA) is recognized.

Tax Audit Form 3CD / Section 63

Clause 18 of Form 3CD requires detailed disclosures of block-wise asset additions, deductions, rates, and depreciation admissible for entities subject to statutory tax audit.