Additional depreciation u/s 32

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Justin Raj.s (Querist)
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28 July 2010 sale proceeds > wdv( opening WDv + Addition), but eligible asset exists on last date, hence we can claim additional depreciation, in such case whether assessee is liable for short term capital gain?

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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28 July 2010 Additional depreciation not possible. For income tax purpose, the excess of sale proceeds over opening WDV + addition shall be Short Term capital Gain.

However, in the books of accounts you may show the eleigible asset separately by crediting the excess sale proceeds as profit on sale of asset. But for IT purpose, it will be STCG.

srinath

srinath (Expert)
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28 July 2010 additional depreciation can be claimed only if there is balance in WDV u can claim.
in the absence of the same no additional depreciation can be claimed

Justin Raj.s

Justin Raj.s (Querist)
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11 August 2010 Your answer is wrong. Additional depreciation is available. Please refer Direct Tax - Law & Practice by Dr.Vinod K Singhania

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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12 August 2010 On what are you going to calculate depreciation when there is no WDV???

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