SLM or WDV — which should I use?▾
Companies Act financial statements may use either, with useful lives from Schedule II. Income-tax returns in India must use the WDV block rates prescribed by the Income-tax Rules.
What is the Schedule II useful life of plant and machinery?▾
General plant and machinery is 15 years, computers 3 years, servers 6 years, furniture 10 years and motor cars 8 years, with residual value normally up to 5% of cost.
What is the half-year rule in income tax?▾
If an asset is used for less than 180 days in the year of purchase, only half of the normal WDV rate is allowed for that year.
