Income tax depreciation adjustment on sale/disposal

Tax queries 144 views 3 replies

A plant & machinery depreciable @ 15%, was sold/dispossed off after 2 year.

Is there any adjustment in Income Tax depreciation,can we claim full depreciation on same on that year.

Will it affect any entry in books of Account.

Replies (3)

Hello
Is there only one plant & machinery in that block ???

More than one plant in books of Books of Account

Here is how WDV is calculated

 

Sr.No      Particulars                                                                     Amount in Rs.

1            Opening WDV of all the assets falling under one block      XXXXXX

2    Add: Asset acquired during the previous year and falling            XXXXXX
              under the same block

3             Total (1+2)                                                                     XXXXXX

4   Less : Money received or payable for the assets sold,
               discarded, demolished, destroyed during the previous
                year to the extent it does not exceed the value arrived
                at serial no.3
                                                              (XXXXXX)

5              WDV of the block of asset (3-4)                                        XXXXXX

  

 

Charged deprecation @ 15% on the WDV value of the block of asset arrived at serial no. 5.


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