depriciation

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Dear sir/Madam,

I had sold my machinary on March 2010.  Can I avail the depriciation for year 2009-2010 for income tax purpose. Please advice me.

regards

Elango

Replies (2)

If u hv any other asset left in the block or still u hv some un written WDV then u will be able to claim depreciation otherwise calculate STCG under section 50.

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                                               


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