Depreciation

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CA. Savitha vijayan (Querist)
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28 August 2009 Friendz....
Suppose in a block of assets all assets are being sold in this period and the net impact is loss... In the net block of the depreciation statement we would get a negative figure then...Is der any requirement to disclose it or to delete the Block of asset.. Please help on this..!!!Thanks in advance!!!

vrnanda

vrnanda (Expert)
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03 September 2009 Hi Savitha,

In case you sold the entire block of assets, treatment is as follows (tax treatment):

Let us say your wdv of the block as on April 1, 2008 is Rs. 200,000/- and you sold the asset for rs. 150,000/-

Your block will not become negative or positive. The amount of Rs. 50,000 will be considered as short term capital loss.

Regards,
V R Nanda.

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