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Section 43(6) - WDV of block of Asset - Income Tax - Ready Reckoner - Income TaxExtract Section 43(6) : WRITTEN DOWN VALUE OF BLOCK OF ASSET Calculation of WDV value of block of assets Particular Amount W.D.V of the block at the beginning of previous year xxxx Add: Actual cost of the assets falling within this block acquired during the previous year xxx Less: Moneys payable (sale price and insurance compensation) in respect of assets falling in this block which are sold, discarded, demolished or destroyed during the previous year and the amount of scrap value. (xxx) Less: WDV of assets transferred in slump sale (compute WDV of asset assuming this is the only asset in Block)* (xxx) W.D.V of block for the Assessment Year xxxx *However, the above reduction i.e. under section 43(6)(c)(i)(C) shall be restricted to the written down value of Block of Assets. Note: The reduction of moneys payable shall only be to the extent that W.D.V. becomes NIL. Moneys payable shall be deducted while computing the WDV even if its due and not received. Actual sale price of the asset sold is to be deducted and not the fair market value of asset sold. EXPLANATIONS: Where the block of asset is transferred in scheme of amalgamation or from holding to subsidiary or vice-versa then actual cost of the block of assets in the case of the transferee company or the amalgamated company shall be the WDV of the transferor company reduced by the amount of depreciation actually allowed. Where any asset forming part of a block of assets is transferred by way of demerger then WDV of block in demerged company shall be reduced by WDV of the assets transferred to the resulting company.
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