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depreciation on sale of car

sonu (actt) (48 Points)

01 October 2010

I have sold a car for100000/- dated 1st october on wdv basis cost of car was 275000/- on 1st april.

can we charged depreciation for this period and loss can be write off in p&l a/c

i have three car at the time in the books of a/c in which 1 car sold out.

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11 Replies

sudhakar ca cwa (service) (1518 Points)
Replied 01 October 2010

first check whether any asset is there in that block of assets.

if yes deduct the sale amount from that block and then caluclate the dep

if not directly take that amount to Profit and loss a/c with out taking the Deprecitation

2 Like

Ankur Goyal (staff) (131 Points)
Replied 01 October 2010

yes, i agree with Mr. Sudhaker. for income tax it is so.

But for Company Accounts purposes, u can charge Dep.

sonu (actt) (48 Points)
Replied 01 October 2010

Originally posted by : sudhakar ca cwa
	first check whether any asset is there in that block of assets. if yes deduct the sale amount from that block and then caluclate the dep if not directly take that amount to Profit and loss a/c with out taking the Deprecitation

i have three car in opening and sold one in oct.

Ankur Goyal (staff) (131 Points)
Replied 01 October 2010

W.D.V as on 1st April XXXXXXXXXXX

Add: Purchases during the year XXXXXXXXXXX

Less: Sold During the year XXXXXXXXXXX

Balance As at 31st March XXXXXXXXXXX

Dep On Bal at 31st March. XXXX

No Loss will be transferred to P/L A/c. if the Balance on 31st Mar is positive.

1 Like

CA Jay shah (CA) (28 Points)
Replied 02 October 2010

as per companies act,you have to provide depreciation for 6 months

and in income tax treametn suggested by ankur goyal is correct...

Hemant Kothari (CA) (33 Points)
Replied 02 October 2010

Dear Sonu,

In the Given Case u have Sold a car and wdv is rs.275000 also u say that there is 3 car with u and also if we deduct sale value from wdv we are left with balance amount of rs.175000 hence we have to charge depreciation on balance 175000 as per incometax purpose.

Nice And Simple incometax rules isn't it?

For Any Queries on incometax contact me.

Vicky5932 (ACCOUNTS OFFICER) (21 Points)
Replied 26 April 2014

Dear Sir, what will be the tratment if any vechile is sold and its deduction during the year is more than its Net block in starting of the year as per Income Tax Act.

sandeep (accountant) (22 Points)
Replied 28 May 2016

sir, i had sold car on 21.01.2016 for Rs 600000/- and as on 1st april 2015 WDV is 648560/- and also purchased new car on same day, will u pls suggest me how to calculate depreciation and treatemet of profit on sale of assets.

I am filling ITR 4 also tell me how to give details in ITR 4 for the assets

regards