Hari Krishna Vidhyut Company Ltd. engaged in the business of generation and distribution of power and electricity has opted WDV method for claiming depreciation on its assets. Opening balance of the block of Plant and Ma

CS Executive · Tax Laws and Practice · PYQS · December 2018
Hari Krishna Vidhyut Company Ltd. engaged in the business of generation and distribution of power and electricity has opted WDV method for claiming depreciation on its assets. Opening balance of the block of Plant and Machinery depreciated @ 15% on 1st April, 2017 was ₹15,00,000. New machines of an amount of ₹25,00,000 were purchased on 15th Nov. 2017 but put to use from 1st December, 2017. Computers for ₹2,00,000 were purchased on 9th Sept. 2017 and put to use in business since that date. The depreciation including the additional depreciation available to the company on plant and machinery and on the computers shall be of an amount of .......... for A.Y. 2018-19.
(A) ₹4,92,500
(B) ₹5,32,500
(C) ₹7,82,500
(D) ₹7,42,500

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act, 1961

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