Calculation of Depreciation

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

           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

  DEP                                                    40,000*15% =6000

                                                                3,00,000*7.5%=22500

TOTAL DEP                                           28,500

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...

 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/

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.

Thanks for telling

WDV- SALE PRICE CHG 15% DEP

AND FOR NEW 7.5% AND PLUS BOTH OF THEM

I agree with Abhiram Bharat

op wdv                          230000

+ purchase                  300000

- sale                             190000

                                      _______

cl wdv                            340000

 dep

300000 @ 7.5%     =  22500

40000 @ 15%  =   6000

total dep 28500

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.