Question ID :
42294
WDV-Section 43(6)(c)
Opening WDV as on 1-4-2021 Of only Vehicles Block(consisting of Car A-WDV Rs. 1 Lakh and Car B-WDV Rs. 8 Lakhs) is Rs. 9 Lakhs. During the year 2021-22, Car B is stolen. Insurance claim of Rs. 12 Lakhs is received. One new Car C is purchased for Rs. 22 Lakhs during the year 2021-22.What will be the WDV for working out of Depreciation for the year 2021-22 under the circumstances. Also, how these transactions should be booked in Books of Accounts.
Posted by
ARUN KUMAR ARORA
on
Jun 05, 2022
Filed Under
DIRECT TAXES
WDV of car B will be zero. WDV of car A and C will be considered for calculation of depreciation. Bank account will be debited with RS. 12 Lakh. Car B will be credited with WDV of Rs. 8 Lakh and income from insurance claim received for car stolen will be credited with balance amount of Rs. 4 lakh.
Posted by
CA. chunauti dholakia on
Jun 06, 2022