Depreciation on sale of assets in the middle of the year

This discussion clarifies whether depreciation can be claimed for assets sold mid-year under the Income Tax Act. According to Section 43(6) of the IT Act, depreciation is generally not allowed when an asset is sold during the financial year, especially if it results in a short-term capital gain. Therefore, you cannot claim depreciation for the three months the asset was held in the year of sale for net worth calculations.