Depreciation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 May 2012
sir i m having following query.
A sole prop. concern has shifted its business from manufacturing to trading of machinery. Its business remained closed from feb 2012 to mar 2012 for carrying out all the formalities. It has sold all its machinery (which was part of its Assets)to diff. firms.
Nw can i claim depreciation on that machinery (asset that i sold)????
Moreover wat will b the treatment of expenses during the shut down period?
A sole prop. concern has shifted its business from manufacturing to trading of machinery. Its business remained closed from feb 2012 to mar 2012 for carrying out all the formalities. It has sold all its machinery (which was part of its Assets)to diff. firms.
Nw can i claim depreciation on that machinery (asset that i sold)????
Moreover wat will b the treatment of expenses during the shut down period?
17 May 2012
1. Under income tax act, you cannot claim depreciation.
2. The sale price of the assets shall be reduced from the (opening WDV of the block + purchases).
3. If the sale price falls short of (Opening WDV + Purchases) the balance shall be allowed as deduction.
4. If the sale price exceeds (Opening WDV + Purchases), the excess shall be taxable as STCG u/s 50.
2. The sale price of the assets shall be reduced from the (opening WDV of the block + purchases).
3. If the sale price falls short of (Opening WDV + Purchases) the balance shall be allowed as deduction.
4. If the sale price exceeds (Opening WDV + Purchases), the excess shall be taxable as STCG u/s 50.
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