Depretetion

This query is : Resolved

Mala (Querist)
Follow

25 November 2011 Dear sir\Mam,
X Co LTD owns two building A&B on April 1st 2003 the rate of Dept is 10% the Dept value being 1415700 it purchase building c 1-1-2003
for Rs 310000 the rate of dept of is which is also 10%.
If building A is sold for Rs 870000 and B 1587000 ON 31/3/2004. Compute the eligible deprecation for the block of asset. can you send the answer for that.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

25 November 2011 If you are asking for depreciation as per Income Tax Act, Since the block of asset has ceased to exist, the company will not be eligible for depreciation.

Further, short term capital gain of Rs. 7,31,300 will arise, since the sale price exceeds the WDV.

Online classes for CA CS CMA