Depreciation and wdv

This query is : Resolved

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)
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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.
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