02 July 2012
Hi everyone.. I have a query regd. depreciation on fixed assets which have been sold during the year. An asset consisting a part of block of assets is sold on 30/03/12 after being used for several years. What would be the admissible depreciation on it as per Income Tax Act..? Will it be allowed for. .. 1. For whole year 2. for 180 days 3. No depreciation
02 July 2012
In my opinion there can not be any depreciation charge allowed as the WDV is to be taken as at the end of the FY and since the asset got transferred before the year end the WDV as 31/03/12 is going to be excluding the sale proceeds. Section 32(1)(ii)(ii). The depreciation percentages are to be applied to WDV. There cannot be a WDV in the middle of the year.
CAclubindia
