Depreciation on car sold in the year

This query is : Resolved

Atul Sharma (Querist)
Follow

07 September 2011 Dear Members

PLEASE GUIDE IF A CAR IS SOLD AFTER 30TH SEPTEMBER THEN SHOULD WE AVAIL 100% DEP. IN CASE OF A PVT. LTD. CO.; FOR INCOME TAX PURPOSES?

CA.M.V.RAMACHANDRA RAO

CA.M.V.RAMACHANDRA RAO (Expert)
Follow

08 September 2011 no. as per Income tax we need to reduce the net realized value(sale price) from the WDV. But not 100% Depreciation.

Message likes : 1 times

Atul Sharma

Atul Sharma (Querist)
Follow

10 September 2011 Thank you sir.

Further please clarify the net realised value is to be reduced from W.D.V. on 1.04.10 or W.D.V. on the date of sale.

Is there any specific instruction in the Income Tax Act that no depreciation is to be allowed in the year of sale of fixed asset?

Upgrade to CAclubindia Pro. Subscribe Now!