Income tax?

You can't reverse the depreciation if you have treated the asset as depreciable.....

In your case section 50 is applicable...

Its not be possible as it is nowhere allowed under income Tax act. U cant reverse depreciation on flat. 

Calculate depreciation on block of asset concepts. 

Thanks and Regards,

Manoj B.Gavali

Originally posted by : sudhir goyal
	A Flat sold   Rs. 18000000  Depreciation claimed on that flat in p/y in income tax Flat purshased(Rs.15400000) 36 months before (LTCA) Client wants to  treat it Long term capital asset & want to reverse depreciation claimed  can he do?

Yes you can if you has claimed depreciation in last AY (i.e. FY 2009-2010) and no assessment undertaken by department...

Revise last year return....... for revision of return, you have time upto 31st March 2012....

And if, you has claimed depreciation for all 3 years, then you can't.....

hello Sudhir

1st of all claiming depreciation is not optional for assesee, it is compulsory for assesee to claim depreciation so you cannot revise the return and claim no dep....simply if u have assest used in buss n eligible for dep. you r compulsarily required to claim dep.

and any gain on DCA is short term capital gain.

Originally posted by : CA,CMA,CS Karan Gogia
	hello Sudhir   1st of all claiming depreciation is not optional for assesee, it is compulsory for assesee to claim depreciation so you cannot revise the return and claim no dep....simply if u have assest used in buss n eligible for dep. you r compulsarily required to claim dep.   and any gain on DCA is short term capital gain.

yeah agreed...However Sec 50 will apply only when there is no asset in the block and block has balanc value or there is zero value of block but some assets exist in the block.....

As Arvind said, he has option to file revised return if flat is not a business asset because depreciation is not optional in case of business asset.However it's not possible to revised all returns,So there is no such way and Sec. 50 will be applies...
 

Claiming depreciation u/s 32 on business assets (block) is mandatory. There is no opportunity for the assessee to treat it otherwise and it is no possible to reverse the depreciation already taken.

Therefore the profit on transfer will be treated as Short Term Capital Gain.