I had opening balance(WDV) of ford car of Rs 720000/- as on 1-4-2007 and i have sold the same car on 20-1-2008 for Rs 560000/- and further no new car has been purchased .
My queries are-
1) Can I claim deprecition of ford car for Financial year 2007-08?
2) If yes then at what rate?
3) If no, please give me the reasons citing specific sections of the act.
25 March 2009
No you Can't. Section 32 of Income tax provides depreciation on Block of Asset not on individual asset. Even though you will get depreciation only when your car is used for business purpose. Furthure, as you said their are not any other asset in the block, this result in Short term Capital Gain. If any other asset is their in Block then only you can take depreciation on opening value of Block.
CAclubindia
