Opening WDV of asset in the next year

If you have grossed all depreciation, 

first, depreciation stops the moment you declare the asset held for disposal. If it did not take a year to sell, then reduce the depreciation amount by that period. After you reduce this amount of wdv, file as usual. 

AS - If any depreciable asset is disposed of, discarded, demolished or destroyed, the net surplus or deficiency, if material, should be disclosed separately and gain/loss recognised in income statement not under revenues.

you can depreciation the asset until last day of disposal. @ Veerendar Singh, can you please quote me the tax act? Txs.

In income tax act calculation of depreciation is different from accounting.

take opening WDV from previous year and make additions to it if any purchase of assets during the year and deduct if any assets sold.

then if WDV at the end of the year is positive then calculate depreciation on it otherwise we have to calculate short term capital gain or loss. refer sec 50(1)

continue to above we have to calculate short term capital gain even though assets under block exists. at the end of the day closing WDV will be nil.

I’m very clear now, my Interpretation was based on only one asset from the block is sold, there by block carrying amount is adjusted along with depreciation.

Calculation of Capital Gain/Loss

Aggregate of WDV of all the assets falling within
that block at the beginning of the year                                                                                XXX

Add: Actual cost of any assets falling within block
acquired during the previous year                                                                                       XXX

Less: Money received or receivable in respect of any
asset in the block which is sold, discarded, demolished
or destroyed during the previous year                                                                                 XXX

WDV at the end of the year                                                                                              XXX

If the above calculations results in a negative WDV then such amount will be considered as short term capital gains. If such amount is positive and no asset exists in the block then such amount will be treated as short term capital loss.