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WDV of BLOCK

Tax queries 1062 views 4 replies

 

A Block consist 3 assets ,  opening WDV is 1000000.00  Rs  ,  One of thees Asset is transfered as gift .  of which WDV is (if computed as only asset in the block ) 500000.00.  

Now question is,    "WILL ANY AMOUNT  BE DEDUCT FROM OPENING WDV ???"    

please answer should be supported by provissions.   

Replies (4)

bro i have confirmed ur case from an example mentioned in V.K Singhania's book. As per them no amount will be deducted from the WDV. Futher as per section 43(6), while computing WDV of the asset only money payable shall be deducted. In our case the person whome the asset is gifted has paid us nothing. So nothing will be deducted.

hellrokr's reply is correct i just wanna add that in case of the person whom u hav gifted the asset explanation 2 to actual cost will apply and accordingly notional cost i.e. WDV to previous owner will be taken as addition during year............Also in hands of person who have gifted asset no cap gain will be taxed as gift is not a transfer..............

Assets transferred as Gift will not going to reduce WDV....

Brother, Saharsh Explanation is rite as Sec 43(6)(c) reads as follows

[(c)   in the case of any block of assets,—

  (i)   in respect of any previous year relevant to the assessment year commencing on the 1st day of April, 1988, the aggregate of the written down values of all the assets falling within that block of assets at the beginning of the previous year and adjusted,

— (A)   by the increase by the actual cost of any asset falling within that block, acquired during the previous year;

  (B)   by the reduction of the moneys payable in respect of any asset falling within that block, which is sold or discarded or demolished or destroyed during that previous year together with the amount of the scrap value, if any, so, however, that the amount of such reduction does not exceed the written down value as so increased; and

 


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