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Dep

neha (accountant ) (29 Points)

30 September 2016

Motor car purchase on 7.1.15 @ 500000, dep charged @ 7.5% for fy 14-15. opening wdv 462500 for Fy 15-16 sold on 6.9.15 @ 350000. whether to charge dep for whole year @ 15% or half yearly @ 7.5%. how to calculate gain/ loss on sale of asset

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Rahul Shah (Assistant Chartered Accountant) (196 Points)
Replied 30 September 2016

No Depreciation is to be charged as your Block of Asset is bocome Nil i.e all the asset in the block are sold.

As regarrds Profit or loss on sale on fixed asset in your case there is Short term Capital Loss of Rs (462500-350000) Rs 112500/- is to be shown in your Return of Iincome & it is to be carried forward for future years.

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ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 30 September 2016

Depreciation as per income tax calculate at the end of the FY. In your case you have sold in between the year ie FY15-16 and I assume no another Car has been purchased. So Block WDV become NIL at the year end.
No depreciation benefit you get.
And due to sale of the fixed asset your Short term capital gain tax comes into play.