Depreciation
This query is : Resolved
02 April 2015
I'm working in an Pvt. Ltd Company and we have sold an old car in this current financial year 2014-15 in the m/o Sept'14. I wanted to know what should be the treatment of Depreciation as per Co. Act. should I need to take effects of current year depreciation i.e. from 01.04.2014 till the date of sale of car, while calculating Capital gain? please also tell me should i calculate Depreciation of current year as per Income tax act. if yes then please show me calculation..
02 April 2015
u need to charge depreciation only upto date of sale from 1.4.2014 for co act purpose
02 April 2015
Thank you Mr. Tushar
but what about Depreciation as per Income tax because the asset has been sold in a 2nd Qtr. on 04.09.2014 therefore should I calculate Dep. under income tax on a prorata basis i.e. 01.04.2014 to 04.09.2014 as we usualy did under co. act or should i show depreciation of first two qtr. means for 6 months i.e. from 01.04.2015 to 30.09.2014??
but what about Depreciation as per Income tax because the asset has been sold in a 2nd Qtr. on 04.09.2014 therefore should I calculate Dep. under income tax on a prorata basis i.e. 01.04.2014 to 04.09.2014 as we usualy did under co. act or should i show depreciation of first two qtr. means for 6 months i.e. from 01.04.2015 to 30.09.2014??
02 April 2015
it will be reduced from block of assets and only on existing charge depreciation for income tax purpose...check this link for confirmation.
https://www.caclubindia.com/experts/depreciation-on-fixed-assets-sold-after-180-days-487435.asp
https://www.caclubindia.com/experts/depreciation-on-fixed-assets-sold-after-180-days-487435.asp
02 April 2015
So in this case we should charge Depreciation only under Companies Act. and Not under Income tax act., am I right?
02 April 2015
for general purpose financial statement as per co act 2013 and for income tax purpose as per income tax act
02 April 2015
sir, what i'm saying is that whether should i charge Depreciation under income tax act or Companies act on fixed asset sold??
or should i only charge Dep. under Companies act..
or should i only charge Dep. under Companies act..
02 April 2015
i said the same for accounts purpose use co act2013 and when u file it return then use income tax act
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