Depreciation on asset sold after 180 days of use
This query is : Resolved
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?
Guest
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.
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.
Message likes :
1 times
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
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
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- TAN for Partnership
- Sales return eway bill
- Relief u/s Section 89
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- STCG on ETF gold & silver
- If there is Long term capital gain exists how much total income to be considered
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
