Fixed Asset Register (FAR)
A fixed asset register lists every long-term asset the business owns — land, buildings, machinery, furniture, vehicles, computers — with its purchase date, cost, depreciation method and current written-down value (WDV). It supports the Balance Sheet, insurance, physical verification and the depreciation claim in the income-tax return.
Depreciation methods
- Straight Line Method (SLM): Depreciation per year = (Cost − Residual value) × Rate. Rate = 100 ÷ useful life. Equal charge every year.
- Written Down Value (WDV): Depreciation per year = Opening WDV × Rate. Higher charge in early years, declining thereafter. This is the method prescribed by the Income-tax Act.
How this tool works
Enter each asset's purchase date, cost, residual value, method and annual rate. The tool computes depreciation financial-year by financial-year from the purchase date up to today, pro-rating the first (and current) year by days held, and shows depreciation for the current FY, accumulated depreciation and WDV for each asset. Summary cards give gross block, accumulated depreciation, net block and additions during the year, with a chart of net block by asset.
Worked example
Computers bought on 20-07-2024 for ₹3,50,000, WDV @ 40%. FY 2024-25: held 255 days → 3,50,000 × 40% × 255/365 = ₹97,808; WDV ₹2,52,192. FY 2025-26: 2,52,192 × 40% = ₹1,00,877; WDV ₹1,51,315. The current year's charge is again pro-rated to today's date.
Book vs tax depreciation
Companies follow Schedule II of the Companies Act 2013, which prescribes useful lives (computers 3 years, furniture 10, general plant 15, buildings 30/60) with 5% residual value. The Income-tax Act uses block-of-assets WDV rates (buildings 5/10%, furniture 10%, plant and cars 15%, computers 40%) with a full-year rate if the asset is used 180 days or more and half rate otherwise — a different convention from the day-wise pro-rating in this register. Keep both computations if you are a company.
Frequently Asked Questions
Which method should a small business use?
Most proprietors and firms follow the Income-tax WDV rates in their books for simplicity; companies must follow Schedule II useful lives.
What is residual (salvage) value?
The estimated amount recoverable at the end of useful life. Schedule II caps it at 5% of cost; it is ignored under the Income-tax block method.
Why is my first-year depreciation lower than the full rate?
The tool pro-rates by the number of days the asset was held in the financial year of purchase.
How do I record the sale of an asset?
Remove the row (or set cost to zero) and account for the profit or loss on sale separately. Under the income-tax block method, sale proceeds reduce the block instead.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.