Capital insurance receipt

ITR 388 views 2 replies

Dear Experts,

Please resolve my query, if the company has received insurance claim against fixed asset, what is the accounting treatment for calculating depreciation as per IT act purpose ? whether that calim have to adjusted in net block of fixed assets(Under sale proceeds) ?

Thanks in advane :)

 

Replies (2)

Yes, the amount will be reduced from WDV; same treatment as of sale proceeds.

Thank u sir. 


CCI Pro

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