•Tax Audit 3CD Clause 18 & Sch II

Dual Depreciation Calculator (Companies Act vs IT Act)

Schedule II Useful Life (SLM/WDV) vs IT Act Sec 32 Block WDV with automatic 180-Day Rule and Deferred Tax (AS 22 / Ind AS 12).

Asset Class Presets:

1. Asset Master & Acquisition Date

Client / Auditee Name

Asset Name / Description

Cost of Asset / Gross Block (₹)

Date Acquired / Put to Use

⚠️ Put to use for 167 days (< 180 days). IT Act 50% half-rate triggered!

2. Companies Act 2013 (Schedule II)

Useful Life (Years)

Residual Value (%)

Depreciation Method

3. Income Tax Act 1961 (Section 32)

IT Block Rate (%)

Additional Depreciation u/s 32(1)(iia) (20%)

Available for manufacturing companies installing new plant & machinery.

Corporate Tax Rate for Deferred Tax (%)AS 22 / Ind AS 12

Chartered Accountant Working Paper

Dual Depreciation Comparison Schedule (FY 2025-26 / 2026-27)

Client: Acme Technologies Pvt Ltd | Asset: MacBook Pro M-Series Laptops

2nd Proviso to Section 32(1) Triggered: Asset was put to use for 167 days (less than 180 days in the year of acquisition). Allowable IT depreciation is restricted to 50% of the normal block rate (20%).

Parameter	Companies Act (Sch II)	Income Tax Act (Sec 32)
Asset Gross Cost	₹5,00,000	₹5,00,000
Basis / Method	SLM (3 Years Life)	Block of Assets (WDV)
Statutory Rate	33.33%	40% (Half: 20%)
Days Put to Use in FY	167 Days (Prorated)	< 180 Days (50% Cap)
Depreciation for the Year	₹72,443	₹1,00,000
Closing WDV / Net Block	₹4,27,557	₹4,00,000

Accounting Timing Difference & Deferred Tax

AS 22 / Ind AS 12

Timing Difference

₹27,557

Tax Depr > Books Depr

Nature of Balance

Deferred Tax Liability (DTL)

Future Tax Payable

Deferred Tax Amount

₹6,936

@ 25.17% Effective Tax Rate

Form 3CD Clause 18 Note: In the Tax Audit Report, allowable depreciation u/s 32 must report the written down value of each block, additions during the year split into <180 days and ≥180 days, and the resultant depreciation claim of ₹1,00,000.

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Statutory & Compliance Disclaimer

This tool is an automated calculation, formatting, and compliance aid provided for informational purposes only. It does not constitute formal legal, taxation, or professional auditing advice. Calculations, citations, and draft documents must be independently verified by a qualified Chartered Accountant (CA) or Company Secretary (CS) against statutory provisions and applicable ICAI/ICSI guidelines before execution or certification.