04 July 2016
In case closing WDV of block of aseet is less than actual cost of asset acquired during the. year and used for less than 180 days .
Opening WDV of block of asset~ 300000
Addition in Jan ~400000(Also eligible for Additional Depreciation)
Asset sold ~ 500000
11 July 2016
Consider the sale of machinery on FIFO basis, i.e. the sale value is deducted from opening balance and balance from new acquisition, leaving a closing balance of Rs.2,00,000. Normal depreciation is charged on WDV Rs.2,00,000 at half the rate. Additional depreciation will be at half the rate but on cost i.e. Rs.4,00,000. Balance 50% additional depreciation can be claimed in next year.
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