Kalpana (CA Final) (72 Points)
25 April 2012
The company has Rs.12 lacs as opening WDV as on 1st April, 2011. It buys a new asset on 1st Feb, 2012 for Rs.10 lacs and sells the new asset on 20th March, 2012 for Rs.8 lacs. What will be the depreciation as per IT Act?
Sameer
(EXPERT)
(173 Points)
Replied 25 April 2012
(12lacs+10lacs-8lacs)*rate of depriciation as per IT act
Assumption:
The block from which the asset belongs is exist
It is not a industrial undertaking
Kalpana
(CA Final)
(72 Points)
Replied 25 April 2012
But the new asset is not in existance, then how can we calculate depreciation on that asset?
CA Prashant Gupta
(Practising Chartered Accountant)
(2516 Points)
Replied 25 April 2012
CA Prashant Gupta
(Practising Chartered Accountant)
(2516 Points)
Replied 25 April 2012
Kalpana
(CA Final)
(72 Points)
Replied 25 April 2012
Then what about Rs.10 lacs amount, it will be added to the block value or not?
CA Prashant Gupta
(Practising Chartered Accountant)
(2516 Points)
Replied 25 April 2012
Sameer
(EXPERT)
(173 Points)
Replied 25 April 2012
Sameer
(EXPERT)
(173 Points)
Replied 25 April 2012
correct if i m wrong,hope fully it will resolve ur problem
Sameer
(EXPERT)
(173 Points)
Replied 25 April 2012
DEPRICIATION WILL BE {1200000+1000000(.5)-800000}*15%
CA Prashant Gupta
(Practising Chartered Accountant)
(2516 Points)
Replied 25 April 2012
Biswajit Das
(Account Executive)
(38 Points)
Replied 27 April 2012
Hi,
As per my knowledge and experience i have calculated the form of Deprection.
Regards,
BisHwaJeet
CAclubindia
