Depriciation

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umar farooque (Querist)

31 July 2012 WDV of a assets is RS 10000/- on 1/4/11. it is sold for Rs 20000/- on 31/12/11. and repurchase same block of assets of Rs 50000/- on 3/3/2012.what is treatment of depriation

aadish

aadish (Expert)

31 July 2012 Block of asset can never be negative, hence on 31/12/11, u have a gain according to law, whether STCG or LTCG, and cannot claim depr on Rs. 10000 but u can claim depr on Rs. 50000 at half rate.

Hope your query is resolved

Guest

Guest (Expert)

31 July 2012 When asset is sold during the year, then depreciation is not charged for that year. Hence your gain will be Rs. 10000/- (20K-10K)
since block gets nil.

And it is STCG since depreciated assets gain are always short term inspite of holding period.

With Regards

CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)

01 August 2012 i agree with adeesh sir

aadish

aadish (Expert)

01 August 2012 Me and neha was wrong.sorry for that
Right answer is..udont have any gain or loss,and depreciation shall be on Rs. 40000 at half rate.cz we see block value at the year end for depreciation purpose.

Message likes : 1 times

Guest

Guest (Expert)

01 August 2012 Dear aadish,

As per my understanding block of asset is not seen at the end of FY.

STCG will occur in this case.

aadish

aadish (Expert)

02 August 2012 As per the concept block of asset will only be seen at last 31.03.xx

Guest

Guest (Expert)

03 August 2012 Thanks aadish for d correction.

aadish

aadish (Expert)