Depreciation schedule: Schedule II, income-tax blocks and clause 18
For CAs finalising accounts and the tax audit. Paste the fixed asset register and get the Companies Act schedule, the income-tax block schedule with the 180-day rule and section 50, deferred tax on the difference, and the Form 3CD clause 18 table.
Free. No sign-up.Rules last reviewed 2 Oct 2026
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You will get the Companies Act schedule, the income-tax block schedule, deferred tax and the Form 3CD clause 18 table.
Keep the fixed asset register in Charter AI and get this schedule every year, ready for the tax audit.
Charter keeps each client's asset register with additions and sales booked from the bills you upload, carries the block WDVs forward and has the schedules ready for the audit.
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How this is worked out
- Each asset is matched to a Schedule II class and an income-tax block from the class column of your register. You can correct both before anything is relied on.
- Companies Act: useful lives from Schedule II Part C, residual value 5% of cost by default, straight line or written down value, charged pro rata by days for additions and sales. Profit or loss on sale is the sale value less the carrying amount on the date of sale.
- Income-tax: each block's opening WDV plus additions less sale proceeds, at the block rate. Additions put to use for less than 180 days in the year get half the rate. Additional depreciation is worked out only for assets you mark as new plant or machinery, and not under the concessional regimes.
- Section 50: sale proceeds above the block's WDV plus additions are a short-term capital gain; a block that ceases to exist gives a short-term capital loss on any shortfall.
- Deferred tax is the difference between the book WDV and the tax WDV at the year end, at the rate, surcharge and cess you enter.
- The free tool works out up to 10 assets per run. Rate and life data last reviewed 2 Oct 2026.
Schedule II useful lives (28 classes)
From Companies Act 2013, Schedule II Part C (MCA e-book text of Schedule II as amended 31 Mar 2014 and 29 Aug 2014)(opens in a new tab), in force from 1 Apr 2014. NESD means no extra shift depreciation.
| Class | Useful life | Extra shift |
|---|---|---|
| Building (other than factory), RCC frame structure | 60 years | NESD |
| Building (other than factory), other than RCC frame | 30 years | NESD |
| Factory building | 30 years | NESD |
| Fences, wells, tube wells | 5 years | NESD |
| Temporary structures and other buildings | 3 years | NESD |
| Bridges, culverts, bunders | 30 years | NESD |
| Carpeted road, RCC | 10 years | NESD |
| Carpeted road, other than RCC | 5 years | NESD |
| Non-carpeted road | 3 years | NESD |
| Plant and machinery, general (not continuous process) | 15 years | Allowed |
| Continuous process plant (24 hours a day), no special rate | 25 years | NESD |
| Medical: X-ray, CT scan, ultrasound, ECG and similar diagnostic equipment | 13 years | NESD |
| Medical and surgical: other equipment | 15 years | NESD |
| Civil construction: earth-moving equipment | 9 years | Allowed |
| Furniture and fittings, general | 10 years | NESD |
| Furniture and fittings in hotels, restaurants, schools, libraries, theatres | 10 years | NESD |
| Motor cycles, scooters and mopeds | 10 years | NESD |
| Motor cars, buses and lorries not run on hire | 8 years | NESD |
| Motor buses, lorries, cars and taxis used in a business of running them on hire | 6 years | NESD |
| Motor tractors, harvesting combines and heavy vehicles | 8 years | NESD |
| Electrically operated vehicles (battery or fuel cell) | 8 years | NESD |
| Office equipment | 5 years | NESD |
| Computers: servers and networks | 6 years | NESD |
| Computers: end-user devices (desktops, laptops) | 3 years | NESD |
| Laboratory equipment, general | 10 years | NESD |
| Electrical installations and equipment | 10 years | NESD |
| Hydraulic works, pipelines and sluices | 15 years | NESD |
| Aircraft or helicopters | 20 years | NESD |
Income-tax block rates (14 blocks)
Income-tax rates are being checked against the Rules. Check the rate for each block before you rely on it.
Rules applied (11)
Residual value is not more than 5% of the original cost. This tool defaults to 5% of cost unless you enter a figure.Not yet verified
Schedule II(opens in a new tab) Stated in Schedule II Part A. Part A was not in the text read on 2 Oct 2026 (only Part C); the 5% ceiling is from the Act as commonly cited. Reviewer to confirm.
Where an asset is added during the year, or sold, discarded, demolished or destroyed, depreciation is calculated pro rata from the date of addition or up to the date of sale (Part C, Note 2).
Useful lives are for single-shift working. For assets that are not marked NESD, depreciation increases by 50% for the period of double-shift use and by 100% for triple-shift use (Part C, Note 6).
Where the cost of a part of an asset is significant and its life differs, determine that part's useful life separately (component accounting), mandatory for years from 1 Apr 2015 (Part C, Note 4).
A company may use a different useful life or residual value, but must disclose the depreciation methods and any useful lives different from Schedule II (Part C, Note 3). For companies other than those following accounting standards, the life should not be longer than Part C.
Continuous process plant means a plant required and designed to operate 24 hours a day (Part C, Note 8).
Depreciation on a block is a percentage of the block's written down value: opening WDV plus additions less sale proceeds (s.43(6)).Not yet verified
1961 Act s.32(1)(ii), s.43(6)(c). 2025 Act: s.33; WDV definition in the 2025 Act (section number not confirmed).
An asset acquired in the year and put to use for less than 180 days gets 50% of the normal rate for that year.Not yet verified
1961 Act s.32(1) second proviso. 2025 Act: s.33 (180-day restriction confirmed in a secondary summary of s.33; clause number not confirmed).
Additional depreciation of 20% of actual cost on new plant or machinery of a manufacturer or power undertaking; 10% in the year if put to use for less than 180 days and the balance 10% in the next year.Not yet verified
1961 Act s.32(1)(iia). 2025 Act: s.33(8) per a secondary index (not confirmed).
No additional depreciation under s.115BAA, s.115BAB or s.115BAC. This tool applies that restriction.Not yet verified
1961 Act s.115BAA(2), s.115BAB(2), s.115BAC(2). 2025 Act: Concessional-regime sections of the 2025 Act (numbers not confirmed). Rules 2026 summaries also cap the depreciation rate at 40% of WDV for these taxpayers; applied here as a rate ceiling.
Where sale proceeds exceed the block's WDV plus additions, the excess is short-term capital gain; where the block ceases to exist, any shortfall is short-term capital loss.Not yet verified
1961 Act s.50, s.43(6)(c). 2025 Act: Capital gains block-asset provision of the 2025 Act (section number not confirmed).