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Calculation of Depreciation

07 August 2009

Please tell me the calculation of Depreciation. Op. WDV of Car Rs. 230000 which was sold on 10.03.2009 for Rs. 190000 and on 23.03.2009 another car was purchased for Rs. 300000. Calculate Depreciation for the year as per Income Tax Act if Rate is 15%.

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10 Replies

Dilip (Working) (408 Points)
Replied 07 August 2009

You need to calculate half of 15% on Rs. 300000?- and at full rate on remaining amount.

prateek (CA Final) (355 Points)
Replied 07 August 2009

Op WDV 2,30,000

+ PURCHASE OF F.A 3,00,000* (purchased on 23.3.2009)

- MONEY'S PAYABLE 1,90,000

TOTAL 3,40,000

MR. R....halpfull hand is back (.) (297 Points)
Replied 07 August 2009

on Rs. 3,00,000 @ 7.5% i.e. 22500 and on Rs. 2,60,000 - 1,90,000 = 40,000 @ 15% ie. 6000 and hence total dep will be Rs. 28500...

CA Abhiram Bharat. (Assistant Manager Taxation) (508 Points)
Replied 07 August 2009

agree.. see the caculation here..

op wdv 230000

less:sold(190000)

balance 40000

Add: purchased30000

balance340000

calculation of depreciation...

40000*15%+300000*7.5%=6000+22500

hence total dep to be charged as per the I.T.act =rs28500/

Jatin Nigam (Chartered Accountant) (54 Points)
Replied 07 August 2009

In case of car which is sold for Rs 190000 whose opening wdv is Rs230000 , no depriciation can be claimed for the current year however the differncre in wdv and amount realized is treated as short term capital loss , Incase of new car purchased on 23-3-2009 one can claim depriciation for 50% of 15% on Rs300000, which comes out to be Rs 22500.

Ashwani Narnoli (.) (1843 Points)
Replied 07 August 2009

Thanks for telling

sandeepverma (don't make exuse for study) (304 Points)
Replied 07 August 2009

WDV- SALE PRICE CHG 15% DEP

AND FOR NEW 7.5% AND PLUS BOTH OF THEM

Krutesh Patel (ACA) (727 Points)
Replied 07 August 2009

I agree with Abhiram Bharat

Sumit Jain (CA) (4760 Points)
Replied 10 August 2009

op wdv 230000

+ purchase 300000

- sale 190000

_______

cl wdv 340000

dep

300000 @ 7.5% = 22500

40000 @ 15% = 6000

total dep 28500

CMA RAVI GUPTA (MT in VPL) (493 Points)
Replied 11 August 2009

i am not agree with jatin bcon there is balance in that block of asset at the end of the financial year. so dep. will be provided remaining balance of old car with usual rate.