## Depreciation Computation Format [Sec. 43(6)(c)]
Depreciation under the block method is computed step-by-step on the WDV of the block:
| Step | Particulars | Amount |
|---|---|---|
| 1 | Opening WDV of the block as on 1 April of the current PY | XXXX |
| 2 | Add: Actual cost of assets acquired during the PY — split into: (a) put to use ≥180 days; (b) put to use < 180 days; (c) acquired but not installed; (d) capital repairs (Sec. 30/31) | XXX |
| 3 | Gross value of block (Step 1 + 2) | XXXX |
| 4 | Less: Money received/receivable on assets of the block sold, discarded, demolished or destroyed during the PY (cannot exceed Step 3) | (XXX) |
| 5 | Closing WDV before depreciation (Step 3 − 4) | XXXX |
| 6 | Less: Depreciation (per Working Note 1; cannot exceed Step 5) | (XXX) |
| 7 | Closing WDV after depreciation (Step 5 − 6) | XXXX |
> For a slump sale asset removed in Step 4, the reduction = Actual cost of the asset − depreciation that would have been allowable as if it were the only asset in the block.
### Working Note 1 — Normal Depreciation (Part 1)
Apply against Step 5 value in this order of allocation:
1. First, allocate to assets bought but NOT put to use → Nil depreciation.
2. Then, allocate to assets used < 180 days → apply half rate → Depreciation (B).
3. Last (balancing figure) → apply full rate → Depreciation (A).
Total Normal Depreciation = A + B
### Working Note — Additional Depreciation (Part 2)
| Asset | Days used in PY | Additional Depreciation |
|---|---|---|
| Acquired & not installed | — | Zero |
| New P&M, ≥ 180 days | — | Actual cost × 20% |
| New P&M, < 180 days | — | Actual cost × 10% |
| Asset bought last year (balance) | balance to be claimed | Actual cost × 10% |
Total Depreciation = Part 1 (Normal) + Part 2 (Additional)
> 'Actual cost' here = Sec. 43(1) cost and includes borrowing cost per Explanation 8.