Profits and Gains of Business or Profession – Test 5

Robin purchased Building worth Rs.80,000 on 08.10.2018 and paid consideration as under :

Account payee cheque            : Rs.60,000

Cash on 08.10.2018               : Rs.10,000

Bearer cheque on 09.10.2018 : Rs.10,000

What would be the cost of Building for the purpose of depreciation ?

Ankush purchased Furniture worth Rs.80,000 on 25.10-2018 and paid consideration as under :

Account payee cheque            : Rs.65,000

Cash on 25.10.2018               : Rs.5,000

Bearer cheque on 28.10.2018 : Rs.10,000

In that case, what would be the cost of Furniture for the purpose of depreciation

A Ltd, purchased as asset of R.5 lakhs exclusively for scientific research. Later, it was transferred for being used in another business, the cost of acquisition added to block of assets in the non-scientific business would be Rs._____

Sunil had a residential Building where he lived, but later moved to a larger apartment. What would be the actual cost of such Building, if it is brought into use for the purpose of the business or profession by Sunil ?

Aman has received a building as a gift from his brother Sumit, whose cost of acquisition was Rs.10 lakhs. Sumit claimed depreciation of Rs.2 lakhs on such building before transfer. The cost which would be added to block of asset for Aman, if he uses it in business would be Rs.___

X Limited had as asset with tax WDV of Rs. 5,00,000. It transferred it to its releated company at Rs.10 lakhs, to enable it to claim higher depreciation. The actual cost of assets in hands of transferee, would be ___________

In case the assessee acquires a second hand asset, actual cost to the assessee shall be an amount as the AO may determine having regard to all circumstances of the case with the previous approval of Joint Commissioner, If

A owned a building which he sold to B in FY 2016-17. In FY 2018-19, he reacquires the building from B. In such a case, depreciation shall be allowed on ____________

Aman had transferred a building on 01.04.2017 with a W.D.V Rs.10 lakhs. On 01.04.2018, he reacquired such building at Rs.15 lakhs. What would be the cost of building that should be added to block of assets, if such building is entitled to depreciation @ 10%?

Anuj transferred a building to Ankush on 01.04.2017 having W.D.V Rs.10 lakhs and transferred at Rs.15 lakhs, on same date leased back such building to Anuj. What would be the cost of building for depreciation purpose for Ankush ?

Sumit urchased building on 01.04.2017 for Rs. 10 lakhs for residential purpose and later on 01.04.2018, he used it for business purpose. The cost of building eligible for depreciation for FY 2018-19 would be Rs.(assume 10% depreciation rate)_

A Ltd, owned 100% shares in B Ltd. What would be the actual cost of capital asset transferred by A Ltd. to B Ltd. or vice versa ?

SSG Ltd an Indian company is 100% subsidiary of RSG Ltd. another Indian company. It transferred a building having  WDV of Rs. 10 lakhs on 01.04.2018 to RSG for Rs.15 Lakhs. The actual cost for RSG Ltd. would be Rs.__________

RSG Ltd. an Indian company has a 100% subsidiary, SSG Ltd. a foreign company, transferred abuilding having WDV of Rs.10 lakhs for Rs.15 lakhs on 30.6.2018 to SSG Ltd. In such a case, what would be the actual cost for SSG Ltd., that will be added to block of assets ?

Any Ltd., an Indian company. amalgamated with another Indian company, Candy Ltd. w.e.f.01-04-2018. What would be the actual cost of assets transferred by Andy Ltd., that will be added to block of assets of Candy Ltd. for depreciation purpose ?

Samarth Ltd.demerged one of its unit into Arth Ltd. w.e.f.01.04.2018. What would be the actual cost of assets transferred by Samarth Ltd., that will be added to block of assets of Arth Ltd. for depreciation purpose for FY 2018-19 ?

Joy Purchased Plant and Machinery worth of Rs.11 lakhs, which included custom duty Rs.1 lakh, for which he claimed credit under Indirect Tax Laws. The actual cost of assets eligible for depreciation would be Rs.______

Subsidy granted by the Central/State Government for acquisition of asset shall be reduced to the extent of

Aakash purchased Furniture worth Rs.15  lakhs for the purpose of  his business. However, a charitable  institution had borne part of cost of such assets amounting Rs.5 lakhs. The actual  cost of assets eligible for depreciation would be Rs.________

Alex, a non resident, acquired certain Plant and Machinery in Singapore. He moved to India for the first time in April,2018, and used  such Machinery for the purpose of his business or profession. In such a case, actual cost of Plant and Machinery shall be reduced by ______

X claimed deduction u/s 35AD on a Building worth Rs.10 lakhs. During Fy 2018-19 he transferred such Building into his other non-specified business. In such a case, actual cost of Plant and machinery shall be reduced by Rs.____

Compute depreciation in hands of Money Ltd. for Ay 2019-20, which owns Building A, WDF on 01.04.2018 Rs.50 lakhs, purchased Building B on 30.06.2018 for Rs.30 lakhs and on same date sold part of Building A for Rs.40 lakhs (rate of depreciation 10%)

Computer WDV of Building as on 31.03.2019 in hands of money Ltd. for AY 2019-29, which owns Building A, WDV on 01.04.2018 Rs.50 lakhs, purchased Building B on 30.06.2018 for Rx.30 lakhs, and on same date sold part of Building A for Rs.40 lakhs (rate of depreciation 10%) ?

Money Ltd. owns a building A & B having WDV on 01.04.2018 of Rs.50 lakhs. Further it purchased Building  C on 30.06.2018 for Rs.30 lakhs and on same date sole Building B for Rs.40 lakhs. All these building are used exclusively for business purpose. In such a case what would be the WDV as on 01.04.2019 ?

Which of the following is true for “Block of Assets” in the context of computing depreciation under the head PGBP?

Which of the following are rate of depreciation for block Building :______

In computing written down value of an assets for depreciation, money payable for sale of assets is reduced. In this context, sale includes

Assets acquired by assessee during the PY and put to use for business for a period of less than 180 days, shall be entitled to depreciation @__

Sun Ltd. owns Machinery having WDV of Rs.50 lakhs on 01.04.2017. It purchased new Machinery for Rs.30 lakhs on 30.12.2017, which is put to use in business on 06.05.2018. Depreciation for purpose of computing taxable Income for AY 2019-20 shall be Rs.________ given the rate of depreciation is 15%

What are the cases, where WDV of a block at the end of year shall be reduced to Nil and hence no depreciation is charged ?