10 August 2009
Whether depreciation is allowed on an asset purchased and sold in the same previous year?
6 assets were purchased during the year in that block and all were put to use for a period less than 180 days. 1 of those assets was sold during the year.
So, wether depreciation would be allowed on that asset or not????
10 August 2009
As per Income Tax Act, any fixed assets added to the block and if it is ready to use then you can claim depreciation at full rate if used more than 6 months otherwise half the rate.If any assets sold in a particular year then the sale proceeds will be reduced from the block of assets, if it is +tive charge depreciation, if it is -tive then show as loss on sale of assets in the P L A/C.
CAclubindia
