CA
910 Points
Joined January 2009
under income tax block of assets theory concept is used,depreciation is not provided on individual assets.
block consist of similar kind of assets and on which same rate of depreciation is applicable.
further as per section 32 for charging depreciation two condition has to be fulfilled that is-
1.there has to be some assets in block AND
2.block must have positive WDV
if any of above condition is not fulfilled then depreciation would not be allowed and capital gain as per the provision of section 50 will be calculated.
WDV is calclulated is as follows-
Opening WDV - xxx
ADD:cost of assets purchase during the year - xxx
LESS:sale value of assets - xxx
( Closing WDV ) - xxx