Hi,
I own a 2-wheeler & a 4-Wheeler for business purpose, both form a block of Fixed asset entitle to get 15% Depreciation.
Wheras, 4-Wheeler sold at Sale Value of Rs. 9,50,000/- on 21/03/2014 that had W.D.V. of Rs. 10,72,038/- on 01/04/2013.
WDV for 2-Wheeler is Rs. 27,021/-.
Combined to a Block W.D.V is Rs. 10,99,059.
Now, Can I claim depreciation (4-Wheeler Seperate or it will be in a block only for Income Tax purpose) and how to calculate Capital Loss and show in Balance Sheet?
Please advise.
Tried to file ITR4 in 2 ways:
(I) Claiming Depreciation in a Block (2-wheeler & 4-wheeler both):
a) If I claim Capital Loss U/S 50 which comes to Rs. 149059 (Sale Value-Purchase Value) if I claim deprecication (Which is Nil) on this block and Nil Value of this bolck for future but I still own 2-wheeler.
b) If I don't claim Capital Loss U/S 50 than depreication is Rs. 22,359/- and WDV for future is Rs. 1,26,700/-.
II) Claiming Depreciation only for 2-Wheeler and show 2-wheeler WDV in Balance Sheet: Whereas show
Loss on sale of 4-Wheeler i.e. Rs. 122027/- (Sale Value-WDV) and show as Capital Loss in Balance Sheet, No Depreciation.
Please advise which is the right way.
CAclubindia
