I have a query relating to depriciatoin?
Suppose a business has a block of assets containing foll.
asset 1- Rs 100000
asset 2- Rs 100000
asset 3- Rs 300000
It sells the asset3 for 2 lacks.
So now the WDV of the block should be Rs 100000+100000+300000-200000=Rs Rs 300000
But what will be WDV of the each of remaining two assets and how we calculate it???
Dear Saurabh,
As per Income Tax, you need not to maintain the value of individual asset but have to maintaint only block of assets.
Dear Mr. Goyal, for the Income tax depreciation calculation, you can deduct sale value of assets from the particular assets balance value. Balance will be the WDV. But for the book depreciation, you have remove the total depreciation of the selling asset from Depreciation reserve & take depn upto the date of sale balance will be wdv and deletion from the total assets of cost price of assets. by sekar
CAclubindia
