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# Depreciation

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CA Final

[ Scorecard : 72]

### The company has Rs.12 lacs as opening WDV as on 1st April, 2011. It buys a new asset on 1st Feb, 2012 for Rs.10 lacs and sells the new asset on 20th March, 2012 for Rs.8 lacs. What will be the depreciation as per IT Act?

Sameer
EXPERT

[ Scorecard : 168]

(12lacs+10lacs-8lacs)*rate of depriciation as per IT act

Assumption:

The block from which the asset belongs is  exist

It is not a industrial undertaking

Total thanks : 1 times

Kalpana
CA Final

[ Scorecard : 72]

But the new asset is not in existance, then how can we calculate depreciation on that asset?

CA Prashant Gupta
Practising Chartered Accountant

[ Scorecard : 2416]

## Depreciation for the year = a+b

Total thanks : 1 times

CA Prashant Gupta
Practising Chartered Accountant

[ Scorecard : 2416]

## There is no identity for indiviual assets hence even sell in same month, the treatment will be same as mentioned above.

Kalpana
CA Final

[ Scorecard : 72]

Then what about Rs.10 lacs amount, it will be added to the block value or not?

CA Prashant Gupta
Practising Chartered Accountant

[ Scorecard : 2416]

## It will be 10 lacs. Rs. 10 lacs * 15%/2 = b

Sameer
EXPERT

[ Scorecard : 168]

correct if i m wrong

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Total thanks : 1 times

Sameer
EXPERT

[ Scorecard : 168]

correct if i m wrong,hope fully it will resolve ur problem

Attached File : 749574 970587 new microsoft office excel worksheet.xlsx downloaded 60 times

Sameer
EXPERT

[ Scorecard : 168]

DEPRICIATION WILL BE {1200000+1000000(.5)-800000}*15%

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