Depriciation

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Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2015 car sold @-170000 on 30.11.2014
WDV-145000 on 01.04.2014

new car purchased @ 8000000 on 1.12.2014

now on what amount depriciation is charged on 800000-145000-25000(loss)=630000
or on the amount of 800000 for 4 month plz explain
it's urgent

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 September 2015 Depreciation to be charged on 8 lacs for 4 months. Account separately profit on sale of car.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 but if we follow the concept of block of assets as per income tax act then what will be the accounting treatment????

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2015 Block of assets is only for tax calculation not for accounting.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 ya admit it but in case we are doing accounting for income tax purpose then can we calculate the depriciation on 630000? and no accounting treatment for profit/ loss.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 September 2015 Yes you can do it for income tax purpose.

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2015 thank you so much!!!!!!!!!!!!!!!!!!

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