Depriciation query?

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???

Replies (3)

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

Dear Goyal, In your Query, Block of assets value is exist but block of assets dose not exist it leads to if, sale value is more than the block of assets value (WDV) than it will treated as short term capital gain other wise i mean, sale value is less than the block of assets value it means short term capital loss...., hence in your query STCL is stood at 3 lac's and another one is, i'm agreeing with CA D.C. Bansal. thank u...,

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