Depreciation when the fixed asset is sold for less than wdv

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Eswar Reddy S (Querist)

26 September 2014 Dear All, For Opening balance of fixed asset Wdv as on 01.04.2013 is RS.500000/-.If it was sold on 12.12.2013 for 200000/-,how much depreciation need to consider and how much capital loss need to show ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

26 September 2014 there wont be any depreciation in the year of sale.

Nasir khan

Nasir khan (Expert)

27 September 2014 There should be depriciaton from April 2013 to 12.12.2013 .
Secondly, you have to mention total depriciation value upto 31.03.2014 you have considered so that it might be easy to calculate loss on fixed assets.
(500,000/-)If we considered upto 31/12/2013 depriciaton rate 40% than Depriciation amount will be 25000/- so you loss will be 500,000-200000-25000=275000/-
So your loss will be 275000/-
And Depriciation percetage consider as per your fixed assets as you didnt mention the type of fixed assets.

Nikhil Kaushik

Nikhil Kaushik (Expert)

27 September 2014 Nasir, you may check again. assuming block cease to exist, there wont be any depreciation if the asset is not being held at the end of the year.

Nasir khan

Nasir khan (Expert)

27 September 2014 And what about SLM??

Nikhil Kaushik

Nikhil Kaushik (Expert)

27 September 2014 the question is regarding Income-tax....

Nasir khan

Nasir khan (Expert)

27 September 2014 Dear Nikhil ji,
I am asking about straight line method of Depriciation.
Can we calculate depriciation as i said earlier.??
Please clear..

Nikhil Kaushik

Nikhil Kaushik (Expert)

27 September 2014 you can claim so in your accounts maintained under companies act or personal accounts. But while computing tax depreciation, you wont be able to compute in the manner provided by you.

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