Step 01
Asset acquired and capitalised
Asset acquired through a vendor bill with a fixed-asset GL. The system creates an asset record automatically with category, useful life and depreciation method.
Accounting Software | Fixed Assets & Depreciation
Schedule II under Companies Act, useful-life dual books. Disposal posted with capital gain or loss.
Asset register with categories. Useful life per Schedule II for the books. Income Tax Act depreciation in parallel for tax. SLM, WDV, units-of-production. Disposal posts the capital gain or loss inline. CWIP tracked separately. Physical verification module supported.
How it works
From acquisition to disposal, with two depreciation books.
Step 02
Two depreciation books, one source
Schedule II depreciation runs for the books (useful life, method per category). Income Tax Act depreciation runs in parallel for tax (block-based, WDV). Both books reconcile at FY-end.
Step 03
Disposal with capital gain or loss
Disposal posts the disposal proceeds, removes the asset from the register, and posts the capital gain or loss inline. Section 50 (block of assets) treatment for tax.
Step 04
CWIP and physical verification
Capital Work-in-Progress tracked separately until commissioning. Physical verification module supports periodic asset audits with barcode / serial scan.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Asset register | Asset master + category + acquisition cost | Asset record with audit trail |
| Schedule II depreciation | Useful life + method per category | Books depreciation per period |
| Income Tax depreciation | Block + WDV + IT Act rates | Tax depreciation in parallel book |
| Disposal handling | Disposal proceeds + asset record | Capital gain or loss posted |
| CWIP tracking | Capital expenditure pre-commissioning | CWIP balance with commissioning trigger |
| Physical verification | Asset master + barcode scan | Verification report with shortfall |
-
Asset register
- Input
- Asset master + category + acquisition cost
- Output
- Asset record with audit trail
-
Schedule II depreciation
- Input
- Useful life + method per category
- Output
- Books depreciation per period
-
Income Tax depreciation
- Input
- Block + WDV + IT Act rates
- Output
- Tax depreciation in parallel book
-
Disposal handling
- Input
- Disposal proceeds + asset record
- Output
- Capital gain or loss posted
-
CWIP tracking
- Input
- Capital expenditure pre-commissioning
- Output
- CWIP balance with commissioning trigger
-
Physical verification
- Input
- Asset master + barcode scan
- Output
- Verification report with shortfall
Compliance + integrations
Two books, one source.
Schedule II for the Companies Act books. Income Tax Act for tax. Both books computed from the same asset register, reconciled at FY-end.
Regulations we work within
-
Companies Act, Schedule II
Useful-life-based depreciation per asset category.
-
Income Tax Act, Section 32
Block-based WDV depreciation in parallel.
-
Section 50 (capital gains)
Disposal treatment per block-of-assets rules.
-
Ind-AS 16 (Property, Plant & Equipment)
Component depreciation supported for Ind-AS entities.
Connects to
- Tally Prime Asset register sync
- Barcode scanner Physical verification
Fixed Assets & Depreciation FAQ
What buyers ask.
Schedule II vs Income Tax. How does the system handle both?
Two depreciation books run in parallel from the same asset register. Schedule II (useful-life-based) for the books. Income Tax Act (block-based WDV) for tax. Both reconcile at FY-end with a deferred-tax workpaper.
What about intra-group asset transfer?
Intra-group asset transfers (between entities in the same group) are supported. The transferring entity records disposal proceeds; the receiving entity records acquisition. Section 47 (income-tax exemption for intra-group transfers) is handled.
Capital Work-in-Progress (CWIP)?
CWIP is tracked separately from operational assets. Capital expenditure accumulates as CWIP until the commissioning event. On commissioning, CWIP capitalises to the asset register and depreciation starts.
Physical verification of fixed assets?
Yes. The physical verification module supports periodic audits with barcode or serial scan. Discrepancies (asset not found, location change, condition change) are surfaced for resolution. Auditors get a verification report at FY-end.
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Related features
Bring your asset register. Run both depreciation books on it.
Upload your Tally fixed asset register. The Schedule II and Income Tax Act depreciation runs in parallel. Reconciliation surfaces in minutes.