Depreciation as per companies act 2013

This query is : Resolved

CA. Mala Rohara (Querist)
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29 July 2014 Please advice how to calculate depreciation:

Original Cost Rs. 100
Original Depre: 4.75%
Revised Useful Life : 15 years
Expired Life : 10 years
Remaining Life : 5 years

Depreciation = (100-47.50)/5
or
Depreciation = (100-5-47.50)/5

Is residual value of 5% need to be considered?

DINESH BANSAL

DINESH BANSAL (Querist)
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29 July 2014 can anyone recieve a second hand car worth rs 650000 approx. as gift from a non-relative person without any consideration.
if no...can u suggest any other measure to show this car as gift by showing a little bit consideration in exchange.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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29 July 2014 pls refer to sec 56 (2) vii c, where any movable property is recd without consideration or inadequate considertaion will be taxable income

but definition of property in the above said clause does not cover car.
hence if u recd car without consideration even from non relative , it will not be taxable u/s 56 (2)
hence relax