Wdv opening balance in balance sheet

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193 Points Posted on 06 October 2023
sir, I have one doubt pls clarify. one of my client purchased second hand car in the year 2018 of rs 480000 he is third owner. my client started the business in year Aug 2023. I am in confusion which opening value WDV is to be taken in the balance sheet for charging the depreciation.
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On 06 October 2023 at 11:39 Report
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Quick Summary
This discussion addresses how to determine the opening balance for a second-hand car purchased before the business started. The consensus suggests calculating the revised book value as of the business's commencement date (August 2023) and applying the appropriate depreciation rate, likely 15% under the WDV method, for the car used in the business.

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CFO- at NHTF
58280 Points Posted on 06 October 2023
Take book value. Else apply WDV on 480000/- to arrive at WDV as on 31.03.2023
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On 06 October 2023 at 14:04
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Pivate
1492 Points Posted on 06 October 2023
Sir,
Can you guide me.

I have small Capital Gain from Mutual funds Rs. 220 and some Capital Gain from stocks RS. 499 So while filling ITR2 schdlude 111A I need to add Rs. 220+499 and put the value of under Full value of Consideration. or need to show separately
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On 06 October 2023 at 16:47
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CFO- at NHTF
58280 Points Posted on 06 October 2023
You may combine it . Sale value of both together may be taken
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On 06 October 2023 at 23:00
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Pivate
1492 Points Posted on 07 October 2023
Thank you Eswar Reddy Sir,
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On 07 October 2023 at 00:00
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Profession
28271 Points Posted on 08 October 2023
Car and mutual fund are not same.
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On 08 October 2023 at 10:42
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CA
115 Points Posted on 09 October 2023

Hi Rehman

If the Car is used for business purpose, You need to calculate revised book value of car as on Aug-23. Rate of depreciation you can consider is 15% under WDV Method.

For depreciation rates, refer III. MACHINERY AND PLANT category in below link:

Link: https://incometaxindia.gov.in/charts%20%20tables/depreciation%20rates.htm

Thanks

Veerus Academy

My Channel link: https://www.youtube.com/ @ veerusacademy

 

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On 09 October 2023 at 17:13

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