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.
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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
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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