Depreciation on car sold

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 February 2018 we have two sole proprietor concerns i have doubt in dep on car sold
1) in first co. we have sold car on 31/10/2017 for Rs.100000/- and WDV is Rs.161264.33 therefore can i deduct dep and show it in accounts? we have not purchased any other vehicle after sale

2)in other co. we have sold car on 30/07/2017 for rs.515774.00 (which was taken on loan - repaid by buyer) and WDV is Rs.771625/- and also purchase car in 31/05/2017 Rs.3950000.00 therefore can i deduct dep and show it in account? if yes then till what period i should deduct dep

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 February 2018 1. For accounting purpose you can charge depreciation. But for income tax purpose, depreciation will not be allowed for the year of sale.

2, For accounting purpose can depreciate 7.71.625/- up to 30/07/2017. Like wise,
can depreciate 39,50,000 from 31/05/2017.
But for income tax purpose depreciate 42,05,851/- ( ie., 7,771,625 + 39,50,000 --
5,15,774).

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