Sec 32: depreciation
This query is : Resolved
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.
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.
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.
(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.
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
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
23 July 2025
https://docs.google.com/document/d/1J3_GkXiuDIk_x8G9Y1NXpETekxRw3BjJw3811v5EOaA/edit?usp=sharing
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