Sec 32: depreciation

This query is : Resolved

JORDAN (Querist)
Follow

25 December 2013 Dear All,

Please guide me regarding " When Does Block Ceases to Exit" & "When Does Block Turns Negative" Concepts with addition to it how it impacts Depreciation computation as per companies Act 1956.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

02 January 2014 A block ceases to exist in the following circumstances:

(a) When all the assets in the block are sold or
(b) When all assets are not sold, only one or more is sold and the sale price sold assets exceeds the WDV + additions.

In such a case, Section 50 (capital gain on depreciable assets) will be applicable.

There is no impact on depreciation calculation as per Companies Act since depreciation is calculated on individual assets and is calculated for the number of days for which the asset is put to use.

JORDAN

JORDAN (Querist)
Follow

08 January 2014 Sid Sir,

I Understood the Lines but not able to Conceptualise the same, Can u pls explain with an example sir.

Like,as per ur lines if any one or more assets in the block sold and sales proceeds exceeds the WDV + Additions of that Particular Block which results into Profit on sale of assets (CG) but what about depreciation on remaining assets Physically present in that block?

Regards,
Jordan

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

23 July 2025 https://docs.google.com/document/d/1J3_GkXiuDIk_x8G9Y1NXpETekxRw3BjJw3811v5EOaA/edit?usp=sharing

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Michael & Co.

CA K GIRIDHAR

Samruddhi Agrawal

MURALIKRISHNA EDDANAPUDI

Namita Fule

Subscribe Now

Sec 32: depreciation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

GST CONSULTANT

CA Final

Senior Executive

GST CONSULTANCY

Accountant