Sale of fixed assets

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YATENDRA SINGH NEGI (Querist)
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05 January 2017 Dear Experts,

The Assessee has sold a motor car on 21st july 2016. WDV of car 3,00,000/- and Sold Value 2,50,000/-, can depreciation be claimed on the car sold, There are other assets in the block. what is the accounting treatment . please reply.

Thanks

Anand

Anand (Expert)
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06 January 2017 In the accounts you will show Loss on Capital Asset of Rs. 50,000/- assuming WDV provided is as per tax and is the same as per books.
For tax purposes, you will start with the Opening WDV of the block, reduce the Consideration received for the car from the block, and in case there are no additions, since block still exists, you will charge depreciation on this value.