This discussion clarifies the distinction between an asset disposal loss and terminal depreciation. A loss occurs when the written-down value (WDV) exceeds the sale value after accounting for depreciation up to the sale date. Terminal depreciation, however, refers specifically to the final depreciation charge before an asset is disposed of or transferred, and it's primarily relevant for assets depreciated using the straight-line method (SLM).
From WDV as on the opening date of the year of sale depreciation Upto the date of sale should be deducted and from that if value is greater than sale value then it should be treated as loss