Depreciation on sale of car

This query is : Resolved

Guest

Guest (Querist)

10 August 2011 My company owns 10 cars out of which 1 car is sold at Loss

in case of companies act :-
i will reduce the amount COP from gross block & give the effect of depreciation claimed till date & Selling Price in adjustment column of depreciation block...

wanted to know the effect of same in income tax act
since Selling price is deducted from WDV there is still balance left at the end of year on that car.....should depreciation effect be given on the left over balance for the succeeding years till it gets nill

CA Navin Jain

CA Navin Jain (Expert)
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10 August 2011 calculate the deprecation on closing wdv as per income tax.

Opening wdv- 10
Deletion - 2
Closing wdv-8

Guest

Guest (Querist)

10 August 2011 this mean even if my Company no more owns car ...it car still claim depreciation on it?

CA Navin Jain

CA Navin Jain (Expert)
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10 August 2011 if block of car is exist to cheese then company shall not claim the depreciation

Guest

Guest (Querist)

10 August 2011 sorry didnt get your reply...
my question is ,even after selling the car my wdv is 8 L than should i claim depreciation on 8 L for the next FY

CA Navin Jain

CA Navin Jain (Expert)
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10 August 2011 yes you can do that

Guest

Guest (Querist)

10 August 2011 thank you sir....
can you please quote the section?

CA Navin Jain

CA Navin Jain (Expert)
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10 August 2011 Sec--32

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