Dear Friends,
Please explain the treatment of depreciation on sale of fixed assets as per IT Act.
Which value is considered for calculation of gross value of the block.
Is it the sale value or other...
3 Replies
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 16 August 2013
If WDV of block of Assets exceeds sales value after the sale & other assets still exits, then sales valus(net of Taxes) should be deducted from WDV of block of asset
otherwise it may be short gain/losses as case may be
Siddharth
(Student)
(128 Points)
Replied 16 August 2013
Why cant we take wdv value instead of sale value for subtracting from gross block.
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 16 August 2013
Gross Value find a significant place under Companies Act, 1956
But Under Income Tax Act 1961 only WDV are considered for making any reference relating to sale or transfer of fixed asset.
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