Deletion from block of asset of furniture

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Nilesh M Bhawsar (Querist)
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07 June 2012 what is treatment of deletion from block of asset of furniture when asset sold at zero value.which amount is deleted from block of asset?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 June 2012 If the asset has been sold at zero value, then 'zero' will be reduced from the block of assets.

The amount received as a consideration for sale is to be reduced from the block of assets, which in this case is ZERO.

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Nilesh M Bhawsar

Nilesh M Bhawsar (Querist)
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07 June 2012 How we claim depreciation as per IT on asset sold from block?the block is reduced as the some asset of block are discarded at zero
can u help me out.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 June 2012 Depreciation will be claimed on the full amount of the block including the value of the discarded asset.

Income Tax Act recognises block of asset concept and not individual asset.

If an asset forming part of block of assets has been discarded, the sale consideration shall be reduced from the opening WDV + any purchases.

If the sale consideration is NIL, no deduction will be made and depreciation will be claimed on the full amount of block.

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