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Depreciation and wdv

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Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2011 Dear Sir,

On 01.04.2010 we have an old motorcycle costing Rs.43456/- and sold it on 13.12.10 for Rs.38568/-. We have purchased a new motor cycle on 25.12.2010 for 45065/-. What will be profit/loss on sale of old motor cycle, total depreciation on 31.3.11 and what will be the WDV value of MOTOR Cycle on 31.03.2011.

Thanks n regards

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

14 September 2011 For income tax purpose if the block of the asset as on 13.12.2010 is nil then you had short term capital gain of Rs.4888(43456-38568) and have to pay short term capital gain tax on it on on 31-3-2011 on Rs.45065 you has to charge depreciation 50% of the original depreciation rate.
If the block of the asset as on 13.12.2010 is exists(i.e. not nil) then you have to charge depreciation as on 31.03.2011 on Rs.4888(43456-38568) at full rate for the year and on Rs.45065 at half rate of original depreciation rate.
OM SAI SRI SAI JAI JAI SAI

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