Hotel Depreciation Calculator
Work out year-wise income-tax depreciation on hotel assets with the WDV method, including the half-rate rule for the first year.
How to use the free Hotel Depreciation Calculator
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This Hotel Depreciation Calculator runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free hotel depreciation calculator. Pick building, furniture, plant or computers, enter cost and years to get a year-wise WDV table with the 180-day rule.
How tax depreciation works for a hotel
A hotel spends heavily on assets that last many years: the building, furniture, air conditioners, kitchen equipment, lifts, generators and computers. Under Indian income tax, you cannot deduct the full cost in the year you buy them. Instead, you claim depreciation every year using the written down value (WDV) method, at a rate fixed for each block of assets.
Closing WDV = Opening WDV − Depreciation
Asset used for less than 180 days in the year of purchase: half the normal rate in that year
Common rates for hotel assets
- Buildings: 10%. This covers the hotel building used for business.
- Furniture and fittings: 10%. Beds, wardrobes, tables, chairs and electrical fittings.
- Plant and machinery: 15%. Air conditioners, kitchen equipment, laundry machines, lifts and DG sets generally fall here.
- Computers and software: 40%. PCs, laptops, servers and computer software.
The rate box is editable because classification depends on facts, and rates can change. Your CA will confirm the right block for each asset.
The 180-day rule
If an asset is bought and put to use for less than 180 days in the financial year, you get only half the normal depreciation in that first year. A kitchen range installed in November therefore gets 7.5% instead of 15% in year one. The full rate applies from the next year on the reduced WDV.
Using the result
- Plan big purchases before the 180-day cut-off, which is usually around early October, if the timing works for your business.
- Depreciation lowers taxable profit but is not a cash cost. Look at cash flows separately when you judge an investment, for example with the hotel ROI calculator.
- Keep invoices and installation dates for every asset in a fixed asset register.
- Remember that book depreciation in your company accounts follows the Companies Act and may differ from tax depreciation.
Tax depreciation is calculated on the whole block, so sales and additions during the year change the numbers. Treat this calculator as a planning view for one asset.
Frequently asked questions
What is the depreciation rate for a hotel building in India?
Buildings used for business, such as a hotel building, are generally depreciated at 10% on the written down value under income tax. Confirm the classification with your CA.
What is the 180-day rule for depreciation?
If an asset is put to use for less than 180 days in the financial year of purchase, only half the normal rate is allowed in that first year. The full rate applies from the next year.
Is tax depreciation the same as depreciation in my accounts?
No. Income-tax depreciation uses block rates on the WDV method, while company accounts follow the Companies Act useful-life method. The two figures usually differ.
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