Capital gain/loss calculation and depreciation claim

Ankit Sachdeva (MBA) (26 Points)

24 July 2014  

Hi,

I own a 2-wheeler & a 4-Wheeler for business purpose, both form a block of Fixed asset entitle to get 15% Depreciation.

Wheras, 4-Wheeler sold at Sale Value of Rs. 9,50,000/- on 21/03/2014 that had W.D.V. of Rs. 10,72,038/- on 01/04/2013.

WDV for 2-Wheeler is Rs. 27,021/-.

Combined to a Block W.D.V is Rs. 10,99,059.

Now, Can I claim depreciation (4-Wheeler Seperate or it will be in a block only for Income Tax purpose) and how to calculate Capital Loss and show in Balance Sheet?

Please advise.

 

Tried to file ITR4 in 2 ways:

(I) Claiming Depreciation in a Block (2-wheeler & 4-wheeler both):

a) If I claim Capital Loss U/S 50 which comes to Rs. 149059 (Sale Value-Purchase Value) if I claim deprecication (Which is Nil) on this block and Nil Value of this bolck for future but I still own 2-wheeler.

b) If I don't claim Capital Loss U/S 50 than depreication is Rs. 22,359/- and WDV for future is Rs. 1,26,700/-.

 

II) Claiming Depreciation only for 2-Wheeler and show 2-wheeler WDV in Balance Sheet: Whereas show

Loss on sale of 4-Wheeler i.e. Rs. 122027/- (Sale Value-WDV) and show as Capital Loss in Balance Sheet, No Depreciation.

 

Please advise which is the right way.