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Schedule II Depreciation Calculator.

Calculate depreciation per Schedule II of the Companies Act 2013 — Part C useful-life table, SLM and WDV methods, single / double / triple-shift adjustment, 5% residual cap. Pro-rated for mid-year additions.

Inputs

Asset class

Useful life per Schedule II Part C: 15 years

Asset cost (₹)

Residual value (% of cost)

Schedule II caps residual at 5% of cost.

Method

SLM = Straight-line; WDV = Written-down value. WDV rate = 1 − (Salvage/Cost)^(1/useful life).

Number of shifts

Double-shift use → depreciation × 1.5; triple-shift → × 2. Useful-life table is single-shift basis.

Months put to use this year

12 months — depreciation is pro-rated for mid-year additions / disposals.

Result

Useful life (shift-adjusted)15.00 yrs

Residual / salvage value₹50,000

Depreciable amount₹9,50,000

Depreciation for current year (12m)₹63,333

SLM schedule

Year	Opening	Dep	Closing
1	₹10,00,000	₹63,333	₹9,36,667
2	₹9,36,667	₹63,333	₹8,73,333
3	₹8,73,333	₹63,333	₹8,10,000
4	₹8,10,000	₹63,333	₹7,46,667
5	₹7,46,667	₹63,333	₹6,83,333
6	₹6,83,333	₹63,333	₹6,20,000
7	₹6,20,000	₹63,333	₹5,56,667
8	₹5,56,667	₹63,333	₹4,93,333
9	₹4,93,333	₹63,333	₹4,30,000
10	₹4,30,000	₹63,333	₹3,66,667

How Schedule II depreciation works.

Schedule II of the Companies Act 2013 replaced the old rate-based system (Schedule XIV) with a useful-life approach. The auditor verifies depreciation by (a) checking the company has used Schedule II Part C useful lives or justified a different life, (b) checking residual is ≤ 5% of original cost unless justified, (c) checking shift adjustments (double-shift +50%, triple-shift +100%), and (d) checking pro-ration for mid-year additions.

This calculator uses the prescribed useful lives in Schedule II Part C. For Plant & Machinery, separate sub-categories apply (continuous process, special-rate, general). Departing from the prescribed life is permitted only with disclosure under Schedule II Note 4 — the auditor will want technical justification.

On CORAA

Depreciation auditing on CORAA happens inside the Working Papers hub — PPE roll-forward by class, additions / disposals reconciled with the FA register, depreciation reasonableness vs Schedule II per asset class, opening WDV linked to prior-year signed accounts (SA 510).

Browse all audit templates More calculators

How Schedule II depreciation works

Schedule II to the Companies Act 2013 replaced the older Schedule XIV (which prescribed depreciation rates) with a useful-life-based depreciation regime, effective FY 2014-15. Companies depreciate fixed assets over the useful life prescribed in Part C of Schedule II, with adjustments for residual value (capped at 5% of original cost) and pro-ration for partial-year usage.

Two methods are permitted: Straight Line Method (SLM) — depreciation = (cost − residual) / useful life; or Written Down Value (WDV) method — depreciation rate computed from the useful life and residual value such that the residual equals 5% of cost at the end of useful life. The company chooses based on the pattern of consumption of economic benefits.

Schedule II provides specific useful lives for 11 broad asset classes (buildings, plant and machinery, furniture, vehicles, etc.) with sub-categories. The triple-shift / double-shift / single-shift adjustment under Part C(III) increases depreciation for assets used beyond single-shift basis — useful life is reduced by the prescribed factor for shift use.

Worked example — plant and machinery acquired mid-year

A company buys plant and machinery worth ₹10 crore on 1 October 2025. Schedule II prescribes useful life of 15 years (general plant). The company uses SLM and runs double-shift operations.

Inputs

Original cost₹10.00 Cr

Useful life (general plant, single-shift)15 years

Double-shift adjustment (+50%)Useful life: 10 years

Residual value (5%)₹50 L

Depreciable amount₹9.50 Cr

Acquisition date1 Oct 2025

Days used in FY 2025-26182 / 365

Output

Annual depreciation (SLM, full year)₹95 L

FY 2025-26 depreciation (pro-rated)~₹47.4 L

WDV at year-end~₹9.53 Cr

Closing scheduleNote 2 (PPE) movement

Double-shift use compresses the useful life by 50% (15 years → 10 years). Annual SLM depreciation = (₹10 cr − ₹50 lakh) / 10 = ₹95 lakh. Pro-rated for 6 months: ~₹47.4 lakh. The asset must be tested for impairment under Ind AS 36 / AS 28 at each reporting date if indicators exist.

Common mistakes

Continuing Schedule XIV rates after FY 2014-15

Schedule II became mandatory from FY 2014-15. Some companies continued using Schedule XIV rates after the transition. The transition required a re-computation: assets with shorter remaining life under Schedule II → depreciate over remaining life; assets with no remaining life → carrying amount adjusted to retained earnings.

Ignoring the 5% residual value cap

Schedule II Note 5: residual value of an asset shall NOT exceed 5% of the original cost. Higher residuals require disclosure and justification. Most companies use 5% by default; using a higher residual (e.g., 10% for plant) is acceptable but rare.

Wrong shift-use adjustment

Part C Note (III): double shift → useful life reduced by 50%; triple shift → reduced by 100% (i.e., full single-shift life becomes half-shift equivalent — but in practice the calculation is asset-specific). Many companies apply this uniformly across all asset classes, which Schedule II does not allow for assets specifically called out as "always-on".

Component accounting ignored for major spares

Schedule II Note 4 requires component accounting when the useful life of a significant component differs from the useful life of the asset. Pumps in a plant, aircraft engines, ship hulls vs equipment — each requires separate useful life and depreciation. Lumping them under "plant and machinery" with a single useful life is non-compliant for Ind AS companies.

Frequently asked questions

What is Schedule II to the Companies Act 2013?+

Schedule II prescribes the basis of computing depreciation — useful lives and residual values for various categories of tangible fixed assets, applicable to all companies preparing accounts under the Companies Act 2013. It replaced the older Schedule XIV (rate-based) effective FY 2014-15.

What is the useful life under Schedule II?+

The estimated period during which an asset is expected to be available for use. Schedule II Part C provides indicative useful lives for various asset classes (e.g., general plant 15 years, buildings 30 years, computers 3 years, motor vehicles 8 years). Companies can adopt different useful lives if justified — but must disclose the justification in the notes.

Can a company use different useful lives than Schedule II?+

Yes — Schedule II Note 1 provides that the useful life of an asset shall NOT ordinarily be different from those indicated. However, where the useful life adopted is different, disclosure should be made in the financial statements with the justification supported by technical advice. Ind AS 16 also requires periodic review.

How is residual value determined?+

Residual value is the estimated amount the company would currently obtain from disposal of the asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. Schedule II caps residual at 5% of original cost.

What is component accounting?+

Ind AS 16 / AS 10 require that each part of an item of PPE with a cost significant in relation to the total cost shall be depreciated separately. For Schedule II purposes, Note 4 requires the same — for example, an aircraft engine and the aircraft body, a building and its lift, a generator and the building. Each component's useful life can differ.

When is mid-year pro-ration applied?+

Depreciation is computed on a "pro-rata basis from the date the asset is ready to use / available for use". Schedule II Note 3 mandates pro-ration. For SLM: full-year depreciation × (days in use / 365). For WDV: depreciation rate applied to WDV × (days / 365).

What happens at transition / change of useful life?+

Schedule II Note 7 (transition): if remaining useful life under Schedule II is shorter than under old Schedule XIV, the carrying amount is depreciated over the remaining new useful life. If remaining life is nil, the carrying amount (after adjusting residual) is recognised in opening retained earnings (with appropriate tax effect). Subsequent change of useful life is a change in estimate under Ind AS 8 / AS 5 — applied prospectively.

How does Schedule II interact with income-tax depreciation?+

Schedule II governs book / accounting depreciation. Income-tax depreciation under Section 32 read with the Income Tax Rules is computed at prescribed rates on the WDV block of assets. The difference between book and tax depreciation creates timing differences and is the largest source of deferred tax under AS 22 / Ind AS 12.

Authoritative sources

Schedule II to the Companies Act 2013 (Part A, B, C) — Read alongside Ind AS 16 / AS 10 (PPE), Ind AS 36 / AS 28 (Impairment), and Section 32 of Income Tax Act 1961 for the tax depreciation parallel.

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

Related calculators

Deferred Tax Calculator →Ind AS 116 Lease →Schedule III Validator →SA 540 — Accounting Estimates →

Last reviewed: 2026-05-28 · For informational purposes only — not professional advice.