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Depreciation as per Income Tax - Block of Assets

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Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2010 Dear,
I am quoting an example for Short Term Capital Gain / Loss Booking as well Depreciation Calcuation of What amount for Software ( Plant and Machinery ) - Service Industry

Opening WDV as on 1st April 10 50
Addition during year 2010-11 100
Sale on 31st Oct 10 ( of addition ) -70
Net Block (50+100-70) 80

Here, we have sold off assets at Rs 70 purchased during f.y. 10-11 for Rs 100..

1. Whether depreciation to be provided on Rs 80 Net Block
2. In Depreciation sheet ( as per IT )whether Rs 30 ( Rs 100 - 70 ) will fall under Short term Capital Loss
3. Whether Depreciation to be provided on Net block of Rs 50 ( Rs 80 - Rs 30 STCL )

CA Sanat Pyne

CA Sanat Pyne (Expert)

27 November 2010 in your case ,Depreciation will be calculated on Rs. 80 and no question of stcl.

stcl/cg will be applicable when all assets of block has been sold.

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