Sale of asset

For the purpose of Income tax block of asset should maintained and depriciation should be calculted as under:

Op. WDV of the block                 :       XX

(+)Acquisition during the year      :       XX

(-) Sale during the year                :       XX

Cl. WDV of the Block                  :       XX

Depreciation on above WDV (whole Depreciation if newly acuired asset was first put to use for more than 180 days or else 50%) should be charged to P & L Account.

For the purpose of Companies act depreciation shall be calculated days wise for each asset as per the rates specified in schedule 14.

AS 6 on depreciation and AS 22 on Deferred Tax should be taken into account for accounting purpose.