The present invention relates to a digital slipmeter for tractors. The slipmeter comprises plural sensing means so as to measure rotational speed of wheels. The sensing means comprises transparent and/or semi transparent element (1) for receiving input pulses from rotation of wheel, detector means (2) to establish optical co-ordination with the transparent and/or semi transparent element (1) thereby generating an output. The slipmeter further comprises micro controller unit (18) operatively connected to the sensing means to receive outputs determining actual speed and wheel speed. The invention also relates to a method for processing wheel slip and actual wheel speed of vehicles. The method steps comprises receiving input pulses from rotating wheels, detecting alternative transparent and/or opaque strips by means of detector means so as to generate square wave inputs for processing and processing of said square wave input by means of micro controller unit whereby data information being processed so as to generate slip and actual speed of wheels. IN-KOL-2009-00667A
