Schedule DPM – Depreciation on Plant and Machinery AY 2026-27
‘Schedule DPM’ in the ITR form captures details related to depreciation on Plant and Machinery under the Written Down Value (WDV) method as prescribed under the Income Tax Act. It applies to taxpayers who have claimed depreciation on tangible fixed assets categorised as plant and machinery used for business or a profession.
This schedule requires information such as the opening WDV of the block of assets, additions (with dates of acquisition and put-to-use), deletions or sales, and the closing WDV after accounting for the depreciation allowable for the relevant assessment year.
Depreciation is computed at the applicable rates specified in the Income Tax Rules, depending on the nature of the machinery, such as general, energy-saving devices, and pollution control equipment.
- Section 32of Income-tax Act, 1961
- Rule 5of the Income-tax Rules, 1962
A business entity can claim depreciation in respect of tangible and intangible assets, not being goodwill, as per block of asset method using written down value method. However, for an entity engaged in generation or distribution of power, there is an option to calculate depreciation as per written down value method or as per the straight line method. Depreciation shall be calculated as per the prescribed rates. The WDV of any block of asset is adjusted with the actual cost of asset acquired during the previous year and sale proceeds realised from sale of asset during that year.
This schedule applies to ITR-3, ITR-5 and ITR-6