Depreciation

under income tax ,we work under the block concept ,so accordingly if there are more than 1 asset in the block & also some wdv value  on the last day of f.y  u will be eliglble for depreciation  at full rate on the wriiten down value.

regards,

nitin

Ram ji,

Yes, you can claim depreciation for full year. If you have block and wdv in that block as on 31.03.2011 you can claim full depreciation on that block even if you have sold 1 asset of that block immediately after 180 days of use.

Mr. Ketan,

My doubt is - will there be any eligiblity for the proprietor to claim depreciation only on car that is sold after it was used for more than 180 days during the year?

Ram ji, 

If you have block of 1 motor only which is sold, you can not claim depreciation on it, because block does not exist on 31/03 at the year end. We provide depreciation on the block of asset on its WDV in the year end.

Realise profit or loss directly in the P/L account without charging the depreciation.

you can charge depreciation as per Companies Act in the books but not in Income tax.

hope it has cleared your doubt.

Thank you Mr. Ketan for clearing my doubt.

depriciation is calculated at the end on wdv of d block...so amount of sale will not provide any depriciation...

If the proprietor had a car in FY 2011-2012 and it is sold during the Financial Year then there is no asset in that block and hence depreciation can not be claimed on it.

Instead Capital Gain is to be calculated since there is no asset in existence in that block during the Financial Year.