According to Income Tax
When an asset is sold after 180 days. We are just reducing form the respective block but we are not claiming the depreciation for the period for which it was actually put it into use.For eg I have a car which is used in business which has opening W.D.V of Rs 1,00,000 after 6 months it has W.D.V of Rs 92,500. I sold the car for exactly Rs 92,500 after 6 months. Now my capital gain is zero.i.e I am comparig the W.D.V after 6 months and the sold value. For this alone we are taking into consideration of that 6 months W.D.V. But we are not claimig this 6 months depreciation while computing Income Tax. Can we depreciation for the asset sold?. Please explain the logic or if i am wrong correct me. Urgent
CAclubindia
