Depreciation Calculator Pro (Companies Act 2013 vs Income Tax Act 1961)
Perform synchronous dual-statutory depreciation calculations. Compare Schedule II Useful Life (SLM/WDV) with Section 32 Income Tax Block rates, apply 180-day half-rate rules, model Section 32(1)(iia) 20% additional depreciation, and compute Ind AS 12 Deferred Tax (DTA/DTL).
precision_manufacturing 1. Fixed Asset Acquisition & Block Classification
menu_book 2. Companies Act Schedule II & Tax Provision
business 3. Corporate Entity Profile
info Schedule II vs. Section 32 Dual Depreciation & Deferred Tax
In Indian corporate financial reporting, enterprises must maintain two separate fixed asset registers:
- Companies Act 2013 (Schedule II): Mandates depreciation on a component basis over the estimated useful life of the asset, ensuring net profit reflects true economic wear-and-tear. Residual value is capped at 5%.
- Income Tax Act 1961 (Section 32): Grants statutory tax depreciation on a “Block of Assets” basis strictly using the Written Down Value (WDV) method. If put to use for less than 180 days in the initial year, rates are halved.
- Deferred Tax (Ind AS 12 / AS 22): The difference between tax depreciation and book depreciation is a temporary timing difference. When tax depreciation exceeds book depreciation, a Deferred Tax Liability (DTL) is created; when book depreciation exceeds tax depreciation, a Deferred Tax Asset (DTA) arises.
FIXED ASSET DEPRECIATION SCHEDULE
Companies Act 2013 (Sch II) vs Income Tax Act 1961 (Sec 32) & Ind AS 12 Deferred Tax
5-Year Dual-Statutory Depreciation Trajectory (figures in Indian Rupees ₹)
| Year | Opening Book WDV | Book Dep (Sch II) | Closing Book WDV | Opening Tax WDV | Tax Dep (Sec 32) | Closing Tax WDV | DTA / DTL Impact |
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Certified that depreciation under the Companies Act 2013 has been computed over a useful life of 15 Years with a residual value of 5%. Tax depreciation has been allowed in accordance with Section 32(1) block rates including any eligible Section 32(1)(iia) additional depreciation. The resultant temporary difference of ₹0.00 has been recognized in accordance with Ind AS 12 / AS 22.