Indudhar (Tax Advocate) (427 Points)
25 March 2009hi,
I had opening balance(WDV) of ford car of Rs 720000/- as on 1-4-2007 and i have sold the same car on 20-1-2008 for Rs 560000/- and further no new car has been purchased .
My queries are-
1) Can I claim deprecition of ford car for Financial year 2007-08?
2) If yes then at what rate?
3) If no, please give me the reasons citing specific sections of the act.
madhur gupta
(student/article )
(1022 Points)
Replied 25 March 2009
dep can be claimed on balance amt of block provided car sold was not the only asset in the block
if it was the only asset in the block then capital loss/gain will come.....
deepak K Gujrati
(CA-practice)
(966 Points)
Replied 27 March 2009
Depreciation on car or any asset is not charged in the year it which it is sold. If there is a balance in the block , depreciation will be charged on the balance amount. If one charges depreciation on a business asset in the year of sale, as a result what will happen: it will give give depreciation at one hand and other hand it will increase profit /reduce loss on sale of that asset. It will have no effect.
Vinay Chopra
(CA )
(197 Points)
Replied 04 April 2009
As per IT Act no depreciation shall be allowed in the year of sale. However, as per Co Act depreciation upto date of sale shall be available.
CA Karun Gupta
(Practicing Chartered Accountant)
(312 Points)
Replied 06 April 2009
No depreciation can be claimed on the car. As per Sec.32 of IT Act, depreciation for a particular F/Y is allowable on the closing WDV of the block after adjusting for all additions and sales during the year.
Sandeep Jindal
(Student)
(31 Points)
Replied 13 April 2009
Hi
No depreciation should be charged on the car for the year in which it is sold,but if it not the only asset in the block then dep should be charged on the remaining block
CAclubindia
