Related to Rate of Depreciation
This query is : Resolved
abhijit majumder
(Querist)
03 November 2025
Sir,
In an previously published article while along with life of asset, rate of Depreciation as per Schedule II of the Companies Act 2013 was mentioned.
However when I checked this with my bare act though I found life of assets, I cannot locate the Rate of Depreciation.
So my query is : Is there any reference on rate of depreciation on different kind of assets in any where under Companies Act 2013?
Regards
Abhijit
In an previously published article while along with life of asset, rate of Depreciation as per Schedule II of the Companies Act 2013 was mentioned.
However when I checked this with my bare act though I found life of assets, I cannot locate the Rate of Depreciation.
So my query is : Is there any reference on rate of depreciation on different kind of assets in any where under Companies Act 2013?
Regards
Abhijit
04 November 2025
Depreciation Rate Calculation - Written Down Value (WDV) Method:
R = {1 – (s/c)^(1/n)} x 100
Where:
R = Rate of Depreciation (%)
n = Useful life of the asset (in years)
s = Scrap value (residual value)
c = Cost of the asset
Straight Line Method (SLM):
Under SLM, the calculation is simpler:
Depreciation Rate = (Cost – Residual Value) / (Useful Life x Cost) x 100
Schedule II of the Companies Act, 2013 does not contain depreciation rates. It only prescribes useful life. The computation of depreciation rate (when using WDV method) must be done using the formula mentioned above.
R = {1 – (s/c)^(1/n)} x 100
Where:
R = Rate of Depreciation (%)
n = Useful life of the asset (in years)
s = Scrap value (residual value)
c = Cost of the asset
Straight Line Method (SLM):
Under SLM, the calculation is simpler:
Depreciation Rate = (Cost – Residual Value) / (Useful Life x Cost) x 100
Schedule II of the Companies Act, 2013 does not contain depreciation rates. It only prescribes useful life. The computation of depreciation rate (when using WDV method) must be done using the formula mentioned above.
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