--- title: "Fixed Assets Register: Format, Contents and Depreciation Schedule" description: "Fixed assets register India format — required contents, depreciation schedule and disposal accounting for compliant SMB record-keeping." canonical_url: "https://billbabu.com/blog/fixed-assets-register-india-format" markdown_url: "https://billbabu.com/blog/fixed-assets-register-india-format.md" type: "blog-post" language: "en-IN" published: "2026-05-16" last_updated: "2026-10-08" author: "BillBabu Team" category: "Accounting" tags: ["fixed assets", "depreciation", "audit", "compliance"] site: "BillBabu (https://billbabu.com)" --- # Fixed Assets Register: Format, Contents and Depreciation Schedule By BillBabu Team · Published 16 May 2026 · Updated 8 October 2026 · Category: Accounting Fixed assets register India format — required contents, depreciation schedule and disposal accounting for compliant SMB record-keeping. ## Why a Fixed Assets Register Is Mandatory A Fixed Assets Register (FAR) is a continuous record of every long-life asset your business owns — its description, location, purchase details, depreciation, and current book value. Section 128 of the Companies Act mandates one for every company; Section 44AA of the Income Tax Act effectively requires the same once turnover crosses the threshold for maintaining books. CARO 2020 explicitly asks the auditor to verify whether proper FAR records, including quantitative and situational details, have been maintained. Banks ask for FAR while sanctioning term loans secured against assets, and the GST department asks for it during ITC reversal audits on capital goods. ## Required Contents of the FAR For each asset record — unique asset code, description, category (block under Income Tax / class under Companies Act), location, custodian (department or person responsible), supplier name and invoice details, date of purchase, date put to use, purchase cost, freight and installation, GST paid and ITC claimed, opening WDV, additions during the year, deletions / disposals, depreciation rate, depreciation for the year (both Companies Act and Income Tax), accumulated depreciation, and closing WDV. The asset must be physically tagged with a code that matches the register — auditors will sample-verify by walking the floor. ## Maintaining the Depreciation Schedule The depreciation schedule is the year-end output of the FAR. Most Indian SMBs maintain two parallel columns — Companies Act depreciation on useful-life basis (for the financial statements) and Income Tax depreciation on block-and-rate basis (for the tax computation). The difference between the two creates a deferred tax asset or liability. Run a half-yearly depreciation calculation rather than only annually — assets put to use after 4 October get half-year depreciation under Section 32 and the FAR must record the put-to-use date precisely. ## Disposal Accounting and Block Treatment On sale of an asset, the entry is — debit Bank (sale proceeds), debit Accumulated Depreciation, debit Loss on Sale (if any) or credit Profit on Sale; credit Fixed Asset (original cost). For Income Tax, deduct sale proceeds from the WDV of the entire block — gain or loss on a single asset is not recognised unless the block becomes empty (Section 50). If a block becomes nil (last asset sold and sale exceeds WDV), the excess is taxed as short-term capital gain. Always retain disposal evidence — buyer's name, GST invoice, mode of payment — for at least eight years. ## Run a Tag-and-Track Asset Register in BillBabu BillBabu maintains a complete FAR — every asset has a unique code, photo, location, custodian, and full historical trail of additions, transfers and disposals. Depreciation runs automatically every month under both Companies Act useful-life and Income Tax block-and-rate methods, with WDV reconciled against the trial balance to the last rupee. At year-end, generate the depreciation schedule, the disposal summary and the Companies Act Schedule III note in one click — the auditor and the tax computation pull from the same single source of truth. **Built for Indian small businesses.** BillBabu is GST-compliant billing software that helps you create invoices, manage estimates, track payments and stay audit-ready — from your phone. [Learn more about BillBabu](https://billbabu.com/) or [download the app](https://play.google.com/store/apps/details?id=com.billbabu.app). ## Related guides - [Export Realization Delays & EDPMS Caution Listing: RBI Extension Rules, Write-Off Limits, and e-BRC](https://billbabu.com/blog/export-realization-edpms-caution-listing-write-off-rules): Protect your business from RBI EDPMS caution listing. Master the 9-month export realization deadline, AD bank extensions (Form ETX), 5% & 10% write-offs, e-BRC, and forex accounting. - [GST on Payment Gateway MDR & Daily UPI Settlements: Journal Entries, ITC, and Reconciliation Guide](https://billbabu.com/blog/gst-on-payment-gateway-mdr-accounting-entries): Master the accounting treatment for payment gateway MDR under SAC 9971, 18% GST ITC claiming in GSTR-2B, Section 194-O TDS, double-entry vouchers, and 3-way reconciliation. - [Working Capital Cycle: Formula and How to Improve It](https://billbabu.com/blog/working-capital-cycle-formula-improve): Working capital cycle formula and improvement tips — days inventory + days receivable - days payable explained for Indian SMBs. --- This is the Markdown version of https://billbabu.com/blog/fixed-assets-register-india-format for AI assistants. Product summary and every page: https://billbabu.com/llms.txt