Block of assets

Block Year Opening written down value (₹) Additions put to use for 180 days or more (₹) Additions put to use for less than 180 days (₹)

These get half the rate this year.

Sale price of assets sold from this block (₹)

New plant and machinery in a manufacturing business: claim 20% additional depreciation

Not for second-hand machinery, office equipment, vehicles, or companies in the concessional tax regime (old section 115BAA).

Normal depreciation

Additional depreciation

Closing WDV

Working

Next five years (no further additions or sales)

Year	Opening WDV	Depreciation	Closing WDV

Assets used for business for less than 180 days in the year get half the rate. Half of the additional depreciation not allowed in the first year is allowed in the next year. If the sale price exceeds the block's value, the excess is a short-term capital gain; if the block is emptied with value left over, that balance is a short-term capital loss. Depreciation is mandatory even if not claimed. Under the Income-tax Act, 2025 depreciation is in section 33.

Asset

Asset class (useful life) Cost (₹)

Residual value (%)

Useful life (years)

Put to use on Method

Schedule II lives are indicative; a different life or residual value must be justified and disclosed.

Depreciation schedule

Year	Days used	Opening	Depreciation	Closing

First-year depreciation is in proportion to the days the asset is used. SLM rate = (100% − residual %) ÷ life. WDV rate = 1 − (residual value ÷ cost)^1/life. Extra-shift use can increase depreciation for plant and machinery. MSMEs that are not companies follow AS 10 and may use these lives as a guide.