Profit & Gains from Business & Profession –Part 1 INCOME TAX-II [AY: 2021-2022]

JU-CMS, Compiled by :Dr.Umakanth.S, Mr.Avinash Raj David, Dr.Supriya Rai & Mr.Vivek Gupta 7
Profit & Gains from Business & Profession –Part 1 INCOME TAX-II [AY: 2021-2022]

2. A new industrial undertaking set up on 1/4/2020 has acquired the following assets
as per dates mentioned against each:

Additions
WDV on Scrap
during the Rate of
S.no Assets 1/4/2020 value
year Dep.
Rs. Rs.
Rs.

1 Plant & Machinery 42,20,000 6,90,000 2,10,000 15%

2 Aircraft 34,50,000 - - 40%

Motor Buses & lorries

3 6,40,000 2,80,000 4,15,000 30%
(used for hiring)

4 Imported car - 3,60,000 - 15%

5 Patent Rights - 8,00,000 - 25%

6 Technical Know –How - 6,00,000 - 25%

Calculate the amount of depreciation which firm can claim for the assessment year 2021-

2022 and also calculate the WDV on 1/4/2021. New Bus was brought into use from

1/12/2020, Plant& Machinery on 1/7/2020 and Patent Rights and Technical Know-How

on 1/11/2020 and Imported Car on 1/6/2020.

JU-CMS, Compiled by :Dr.Umakanth.S, Mr.Avinash Raj David, Dr.Supriya Rai & Mr.Vivek Gupta 8
Profit & Gains from Business & Profession –Part 1 INCOME TAX-II [AY: 2021-2022]

3. A new industrial undertaking set up on 1/4/2020 has acquired the following assets
as per dates mentioned against each:

Assets Date of acquisition Date of Use Cost Rate of

Depreciation
Rs.

Machinery 31/3/2020 5/9/2020 6,00,000 15%

Electric motor 1/7/2020 1/10/2020 78,000 15%

Plant 12/11/2020 15/12/2020 12,00,000 15%

Calculate the amount of admissible depreciation and WDV down value as on 1/4/2021.

JU-CMS, Compiled by :Dr.Umakanth.S, Mr.Avinash Raj David, Dr.Supriya Rai & Mr.Vivek Gupta 9