Suppose WDV of a building is Rs 500000 (Rate of Depreciation 25%)
Now it says WDV of Rs 50000 machinery is lost by fire.And Rs 40000 is received by an insurance claim.
My question is whether this Rs 50000 worth machinery is to be deducted to find out the allowable depreciation and is the loss of Rs 10000 allowable as per IT rule?