Property Depreciation SLM vs WDV Calculator (2026)

Calculate building depreciation under Income Tax Act WDV 10% rate vs Straight Line Method (SLM).

Building Asset Inputs

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Yrs

Year 1 Income Tax WDV Depreciation Deduction

₹0

WDV Book Value After Projection

₹0

SLM Book Value After Projection

₹0

Cumulative Depreciation Claimed

Total WDV Tax Loss Claimed ₹0
Total SLM Depreciation ₹0

SLM vs WDV Depreciation Rules (Income Tax Act 2026)

Depreciation allows commercial property owners, landlords, and corporate entities to claim structural wear-and-tear as a non-cash tax-deductible expense under the Income Tax Act, significantly lowering overall taxable income from property assets.

Choosing between the Straight Line Method (SLM) and Written Down Value (WDV) determines the timing and magnitude of your annual tax savings. Evaluate your commercial asset returns on our commercial property rental yield calculator and rental yield calculator. Calculate tax liability on eventual property disposal with our capital gains tax calculator, evaluate annual corporate income tax on our income tax calculator, convert land plot units on our property area converter, and estimate structural building capital costs on our home construction cost calculator.

Depreciation Method Calculation Formula ITR Filing Mandate
Written Down Value (WDV) Depreciation = Opening Book Value * Rate% Mandatory for Income Tax (Block of Assets)
Straight Line Method (SLM) Depreciation = Cost / Useful Life Years Allowed for Companies Act Financial Reporting

Income Tax Act 10% WDV Building Depreciation Rules

SLM vs WDV Method Comparison

Tax Shield Insight

Claiming 10% WDV building depreciation generates a non-cash tax shield, significantly reducing your taxable business profit and net tax payout!

Frequently Asked Questions

What is the Income Tax depreciation rate for commercial buildings in India?
Under Section 32 of the Income Tax Act, commercial and industrial building blocks attract a mandatory 10% depreciation rate on Written Down Value (WDV).
Is land value eligible for income tax depreciation?
No! Land is an appreciating asset and does NOT qualify for depreciation under Income Tax laws. Depreciation is allowed only on the building superstructure cost.
What is the difference between SLM and WDV depreciation methods?
SLM (Straight Line Method) charges a fixed equal depreciation amount every year based on original cost. WDV (Written Down Value) charges a fixed percentage on the opening reduced balance each year.
Which depreciation method is mandatory for Income Tax filing in India?
For income tax returns (ITR), the WDV method on Block of Assets is mandatory for all businesses and commercial property owners (except power generation undertakings).
What is the depreciation rate for residential buildings rented out?
Residential buildings used for business or rented out attract a 5% WDV depreciation rate under Income Tax Act rules.
What is the Half-Year Depreciation rule (180 days rule)?
If a property asset is acquired and put to use for less than 180 days in a financial year, only 50% of the normal annual depreciation rate is allowed for that first year.
How does property depreciation save income tax?
Depreciation is a non-cash expense that is deducted from business or rental income, reducing net taxable profits and overall tax liability.
What happens when a depreciated property asset is sold?
When a depreciable block of assets is sold, the net sales proceeds reduce the block value. If proceeds exceed the block WDV, it results in Short Term Capital Gains (STCG) under Section 50.