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Wdv opening balance in balance sheet

06 October 2023

sir, I have one doubt pls clarify. one of my client purchased second hand car in the year 2018 of rs 480000 he is third owner. my client started the business in year Aug 2023. I am in confusion which opening value WDV is to be taken in the balance sheet for charging the depreciation.

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6 Replies

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 06 October 2023

Take book value. Else apply WDV on 480000/- to arrive at WDV as on 31.03.2023

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Sandeep Jain (Pivate) (1459 Points)
Replied 06 October 2023

Sir,
Can you guide me.

I have small Capital Gain from Mutual funds Rs. 220 and some Capital Gain from stocks RS. 499 So while filling ITR2 schdlude 111A I need to add Rs. 220+499 and put the value of under Full value of Consideration. or need to show separately

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 06 October 2023

You may combine it . Sale value of both together may be taken

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Sandeep Jain (Pivate) (1459 Points)
Replied 07 October 2023

Thank you Eswar Reddy Sir,

sabyasachi mukherjee (27574 Points)
Replied 08 October 2023

Car and mutual fund are not same.

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Veeru's Acadamy (CA) (115 Points)
Replied 09 October 2023

Hi Rehman

If the Car is used for business purpose, You need to calculate revised book value of car as on Aug-23. Rate of depreciation you can consider is 15% under WDV Method.

For depreciation rates, refer III. MACHINERY AND PLANT category in below link:

Link: https://incometaxindia.gov.in/charts%20%20tables/depreciation%20rates.htm

Thanks

Veerus Academy

My Channel link: https://www.youtube.com/ @ veerusacademy