depriciation

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prajeesh k (Querist)
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16 August 2010 dear experts
l have few doubts related to depreciation calculation.pls clarify my doubts. following are

1) if one assetis sold from the block of asset during the year.whether in case of sale 180days applicable or not ?
2)one asset purchased during the year and the same has been sold during that year.how depreciation will be calculated?half rate or full rate?

Rahul Gupta

Rahul Gupta (Expert)
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16 August 2010 In my view answers to your questions are >
1. 180 days are applicable in case, it is used for less than 180 days.

2. If the asset is put to use and date of sale is more than 180 days then, full rate is applicable otherwise, half rate will be applied.

Experts views are solicited....

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 August 2010 1. If the asset is sold from a block of asset even in March no depreciation allowable as Depreciation is provided on the WDV as on 31st march only. So the sale value will be reduced from opening WDV for the purpose of calculating Depreeciation.

2. In case of asset purchased before september and sold after september depreciation available at half rate.

prajeesh k

prajeesh k (Querist)
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16 August 2010 for example asset sold ( plant & machinery )
on 31-05-2009 Rs. 100000/- out of block of assets.then this machinery used less than 180 days during this PY,this case you are telling half rate is applicable. so 7.5%0.my doubt is this case we are not required to consider the period of use like April to may 09? pls see the calculation and tel me which one is correct.
100000*7.5/100 = 7500/- or
100000*7.5/100*2/12 = 1250

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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16 August 2010 in this case : No depreciation is allowed under income tax act.

simply, deduct Rs. 100000/- in the value of that block of asset.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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16 August 2010 If the asset is sold from the opening block of asset even in March no depreciation allowable as Depreciation is provided on the WDV as on 31st march only. So the sale value will be reduced from opening WDV for the purpose of calculating Depreeciation.

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