Depreciation as per Block of Asset

It would be helpful if get clarification on the following doubt

An assessee owns only one asset in a particulars block which is sold for Rs.200000 on 31-Dec.2008.The WDV of the asset is Rs.220000.He Bought a new asset which comes under the same block for Rs.150000 which is used for less than 180Days. What would be the Depreciation?. Whether the assessee get full year depreciation for the Remaining opening W D V of Rs.20000?

I Expect your support & Assistance now & later

Replies (8)

Notify me at jinshopv @ gmail.com

 

 if new assest is purchased before sale of old asset then RS. 20000 is also liable to depreciation.

if new assets is purchases after sale of old asset then Rs. 20000 is STCL.

As per Section 43(6) if Income Tax Act, WDV is calculated as given below..

Opening Value of Block .......................................................................................................xxxxxxx

Add: Actual Cost of Assets Acquired during the PY belonging to same block.........................xxxxxxx

Less: Moneys Payable in respect of any asset in d block which is sold,

Discarded, demolished, together with the scrap value ............................................................xxxxxxx

WDV for the purpose of Depreciation...................................................................................xxxxxxx

As per my opinion u will get depreciation on Rs. 20000  X 100% X Rate of Dep + New Asset Actual cost X 50% X Rate of Dep(since less than 180 days).

It is irrelevant dt u have purchased it before sale or after sale date.

I think Amit is right....u will be allowed to claim full depreciation on 20000

amit is right

Yes I fully agree with Mr.Amit, you can claim 100% dep on the remaining part of the opening WDV of Rs.20000/- & 50% of the rate of dep on new asset of Rs.150000/-.( as new asset put into use for just 91 days)

Thanx for clarify me 

i agree with amit

 

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