Depreciation
This query is : Resolved
mohan karandikar
(Querist)
22 June 2012
Dear sir/madam,
I sold a car in July 2011 for Rs. 400,000/- and a week later bought a new car for Rs. 800,000/- (invoice value).
On what value is depreciation to be claimed for AY 2012 - 2013 ?
Thanks & regards.
Mohan.
I sold a car in July 2011 for Rs. 400,000/- and a week later bought a new car for Rs. 800,000/- (invoice value).
On what value is depreciation to be claimed for AY 2012 - 2013 ?
Thanks & regards.
Mohan.
22 June 2012
1. As per Income Tax Act, depreciation will be calculated only on Rs. 8 lakhs.
2. As per Companies Act, depreciation will be calculated on both Rs. 4 lakh and Rs 8 lakh on the basis of the number of days for which the asset was used.
2. As per Companies Act, depreciation will be calculated on both Rs. 4 lakh and Rs 8 lakh on the basis of the number of days for which the asset was used.
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mohan karandikar
(Querist)
22 June 2012
I am filing returns as an individual.
Won,t the written-down-value be Rs. 400,000/- ( Rs. 800,000/- minus Rs. 400,000/-), for calculation of depreciation?
Thanks & regards.
Won,t the written-down-value be Rs. 400,000/- ( Rs. 800,000/- minus Rs. 400,000/-), for calculation of depreciation?
Thanks & regards.
22 June 2012
WDV will be calculated as under:
Opening WDV Rs. 4lakhs
Add: Additions Rs. 8 lakh
Less: Sale Rs. 4 lakh
Balance Rs. 8 lakh
If the opening WDV was less than Rs. 4 lakhs, then calculation shall be made accordingly.
Opening WDV Rs. 4lakhs
Add: Additions Rs. 8 lakh
Less: Sale Rs. 4 lakh
Balance Rs. 8 lakh
If the opening WDV was less than Rs. 4 lakhs, then calculation shall be made accordingly.
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mohan karandikar
(Querist)
22 June 2012
Thank you very much Mr. Bhardwaj for your answer and further clarification.
with best regards,
Mohan K.
with best regards,
Mohan K.
23 June 2012
You are welcome. You should use the thanks button to convey your thanks.
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