Capital gain/loss calculation and depreciation claim

Tax queries 460 views 3 replies

Hi,

I own a 2-wheeler & a 4-Wheeler for business purpose, both form a block of Fixed asset entitle to get 15% Depreciation.

Wheras, 4-Wheeler sold at Sale Value of Rs. 9,50,000/- on 21/03/2014 that had W.D.V. of Rs. 10,72,038/- on 01/04/2013.

WDV for 2-Wheeler is Rs. 27,021/-.

Combined to a Block W.D.V is Rs. 10,99,059.

Now, Can I claim depreciation (4-Wheeler Seperate or it will be in a block only for Income Tax purpose) and how to calculate Capital Loss and show in Balance Sheet?

Please advise.

 

Tried to file ITR4 in 2 ways:

(I) Claiming Depreciation in a Block (2-wheeler & 4-wheeler both):

a) If I claim Capital Loss U/S 50 which comes to Rs. 149059 (Sale Value-Purchase Value) if I claim deprecication (Which is Nil) on this block and Nil Value of this bolck for future but I still own 2-wheeler.

b) If I don't claim Capital Loss U/S 50 than depreication is Rs. 22,359/- and WDV for future is Rs. 1,26,700/-.

 

II) Claiming Depreciation only for 2-Wheeler and show 2-wheeler WDV in Balance Sheet: Whereas show

Loss on sale of 4-Wheeler i.e. Rs. 122027/- (Sale Value-WDV) and show as Capital Loss in Balance Sheet, No Depreciation.

 

Please advise which is the right way.

 

Replies (3)
your second method of calculation is correct..... let others also give their view on this.

Right method is

 

WDV Opening balance :                                       1099059

Add : Actual cost of assets acquired :                           nil

Less : Money received in respect of assets sold : 950000

                                                                          --------------

WDV for assesment year                                       149059

Depreciaion for A/Y @ 15 %                                   22359

                                                                          ---------------

WDV closing balance                                              126700

You can't claim short term capital loss because block not cease to exist.


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