I had opening balance(WDV) of ford car of Rs 720000/- as on 1-4-2007 and i have sold the same car on 20-1-2008 for Rs 560000/- and further no new car has been purchased .
My queries are-
1) Can I claim deprecition of ford car for Financial year 2007-08?
2) If yes then at what rate?
3) If no, please give me the reasons citing specific sections of the act.
25 March 2009
Depn as per 43(6) cannot be claimed if it is the only asset in the block because block cease to exist.However if there are many such cars in the block than depn on motor car can be claimed @ 15%. Morever as per Sec 50 short term capital loss arose of Rs 160000(720000-560000). Thanks.
26 March 2009
U/ as 43(6)-AS this is the only asset in particular block and the asset is sold out after this sale transaction the block is ceases to exist.hence you can not be eligible to claim.
In case any asset is there in block after sale transaction than you can claim dep @ 15 per annum on WDV
CAclubindia
