CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
05 November 2008Items like MODEMS have since been rendered as obsolete before completing their useful life and these are being carried at their book value. However, it is clear that these are of no use any more. How the same should be dealt with in accounts and what are the implications in Income Tax and Companies Act.
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 05 November 2008
You can write off the WDV of assets dicarded in the accounts. For getting incometax benefit you have to actually sell them.
CAclubindia
