Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Weighted depreciation

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)

18 November 2009

If a 150% depreciation( u/s 35) was claimed n allowed on an asset say of rs 1,00,000 and it was sold for 1,10,000, will capital gains arise? Is d situation same if enhanced dep was claimed for the same asset

Reply
Follow
Share

4 Replies

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)
Replied 19 November 2009

if any scientific research assets is come into block then its value will be taken as NIL and if such asset is sold then that amount will be reduced from that block,.

Upgrade to CAclubindia Pro. Subscribe Now!

MR. R....halpfull hand is back (.) (297 Points)
Replied 19 November 2009

Originally posted by :Hareesh H Sharma
"	If a 150% depreciation( u/s 35) was claimed n allowed on an asset say of rs 1,00,000 and it was sold for 1,10,000, will capital gains arise? Is d situation same if enhanced dep was claimed for the same asset	"

the amount less from research exp..... capital gain not arise

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 19 November 2009

hey the concept about biz gain from sec 41is fine for me..thats what u meant rite manish?? but i asked if thats the only asset in the block and its sold for 1.1 lakhs aftr claiming weighted depreciation will entire 1.1 be taken as sec 41(3) or just 1 lakh being the cost of the asset??