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Depreciation for Tax Purposes Pakistan 2026 — WDV Guide

June 24, 2026Aitsaam Ali6 min readBusiness Owners

Business fixed assets — building, machinery, vehicles, computers — apna zyada tar value naye purchase ke wajah se nahi, balke istemal ke sath waqt guzarne se khoti hain. Ye depreciation ek legitimate tax-deductible expense hai jo business ki taxable income kam karti hai. Pakistan mein Written Down Value (WDV) method use hoti hai — is guide mein poora calculation aur declaration process dekhtay hain.

TL;DR

WDV method: depreciation = closing written down value x rate%. Building 10%, Furniture 15%, Plant/Machinery 15%, Computer/IT 30%, Vehicles 15%. Business return mein fixed asset register ke through declare hoti hai.

Depreciation Kya Hai — WDV Method Explained

Written Down Value (WDV) method mein depreciation asset ki original purchase price par nahi lagti — balke har saal ki "closing" ya "written down" value par calculate hoti hai. Isi wajah se pehle saal mein depreciation zyada hoti hai, aur har agle saal thodi kam hoti jati hai (declining balance).

Formula: Is Saal Ki Depreciation = Opening Written Down Value × Depreciation Rate%. Closing WDV = Opening WDV − Depreciation (+ new additions − disposals).

Depreciation Rates — Asset Categories

Asset CategoryApproximate Rate
Building (Commercial/Industrial)10%
Furniture & Fixtures15%
Plant & Machinery15%
Computer & IT Equipment30%
Motor Vehicles (Business Use)15%

Exact rates Income Tax Ordinance ki Third Schedule mein specified hain aur asset sub-category ke hisab se thodi vary kar sakti hain — apni specific asset category professional se confirm karein.

Calculation Example

YearOpening WDVRateDepreciationClosing WDV
Year 1Rs 10,00,00015%Rs 1,50,000Rs 8,50,000
Year 2Rs 8,50,00015%Rs 1,27,500Rs 7,22,500
Year 3Rs 7,22,50015%Rs 1,08,375Rs 6,14,125

Ye example dikhata hai ke depreciation amount har saal reduce hota jata hai kyunke WDV khud reduce ho rahi hoti hai — asset kabhi zero WDV tak nahi pohanchta theoretically, lekin practically small residual value tak reduce hota hai.

Business Return Mein Declare Kaise Karein

  • Fixed Asset Register maintain karo — har asset ki purchase date, cost, aur category
  • IRIS business return ke "Depreciation" section mein opening WDV, additions, disposals enter karo
  • System applicable rate se depreciation khud calculate karega
  • Closing WDV agle saal automatically carry-forward hoti hai

Common mistake: Naye assets ko poori cost expense ki tarah ek sath claim karna galat hai — capital assets sirf depreciation ke zariye, saalon mein phaila kar claim hotay hain. Ye galti FBR audit mein assessment amendment ka sabab ban sakti hai.

Kamboh Associates Se Fixed Asset Register

ServiceFee
Fixed Asset Register SetupRs 5,000
Annual Depreciation CalculationRs 3,000/year
Business Return Filing (With Depreciation)Rs 5,000+

Aksar Puchhe Gaye Sawal — Depreciation Tax

Depreciation kya hoti hai tax purposes ke liye Pakistan mein?
Depreciation ek business asset ki value mein time ke sath aane wali kami hai jo tax-deductible expense ke taur par claim ki ja sakti hai. Pakistan mein Written Down Value (WDV) method use hota hai — har saal asset ki remaining (written down) value par fixed percentage rate se depreciation calculate hoti hai.
WDV method kaise kaam karta hai?
WDV method mein depreciation asset ki original cost par nahi, balke har saal ki closing (written down) value par calculate hoti hai — is liye pehle saal depreciation zyada hoti hai aur baad ke saalon mein kam hoti jati hai. Formula: Depreciation = Written Down Value x Rate%.
Depreciation rates kya hain different assets ke liye?
Approximate rates: Building 10%, Furniture aur Fixtures 15%, Plant aur Machinery 15%, Computer/IT Equipment 30%, Motor Vehicles (business use) 15%. Exact rates Income Tax Ordinance ki Third Schedule mein diye gaye hain aur asset category ke hisab se vary karte hain.
Depreciation IRIS return mein kaise declare karein?
Business return ke "Depreciation" ya "Fixed Assets" section mein har asset category ki opening WDV, addition, disposal, aur calculated depreciation enter ki jati hai. System khud closing WDV carry-forward karta hai agle saal ke liye.
Depreciation calculation mein Kamboh Associates kya help karti hai?
Kamboh Associates aapke business assets ka fixed asset register banati hai, sahi WDV depreciation calculate karti hai, aur return mein correctly declare karti hai. WhatsApp 0328-4675162.

Fixed Asset Register Banwao

Depreciation sahi calculate ho, tax bachat maximize ho — Kamboh Associates handle karti hai.