Depreciation on asset sold after 180 days of use

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Pramod (Querist)
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07 June 2016 If an asset is sold after 180 days of use, do we have to charge depreciation on that asset for the days the asset had been used? What is the treatment as per IT rules?

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Guest (Expert)

07 June 2016 Apply the block concept.
Once an asset enters the block of asset,it looses its personal identity & classified with whole block.
If the block of asset does not exist on balance sheet date,no depreciation shall be charged.

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Ankur Singhal

Ankur Singhal (Expert)
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07 June 2016 Dear pramod
Under companies act you charge depreciation on number of days you used the asset.
But under income tax act we charge depreciation on block of asset basis.
In income tax if asset is sold during the year then we deduct the sale value from the opening wdv. Then we calculate depreciation on the block

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Pramod

Pramod (Querist)
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07 June 2016 Thank you Chaitanya and Mr.Ankur.

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