Depreciation as per Income Tax - Block of Assets
This query is : Resolved
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 )
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 Navin Jain
(Expert)
27 November 2010
Depreciation would be provided on rs. 80.
Short term capital gain / loss will be arise when all block of assets ceases to exist.
In your case block of assets are not ceases to exist
Short term capital gain / loss will be arise when all block of assets ceases to exist.
In your case block of assets are not ceases to exist
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