Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Asset transferred as GIFT

Others 775 views 3 replies

Guest

If assessee gift his asset to another, then, in such case can both the person i.e. assessee and the person to whom assets is transferred can claim depreciation as - WDV of assessee will be reduced by zero amount as in gift no consideration is received, and - The person who has received the gift will record it a WDV to transferor (Explanation 2 to Section 43(1)). Please replay as soon as possible. With Warm Regards, Kunal Agrawal kunalagrawal @ aol.in

Replies (3)

saranraj

CA FINAL

419 Points Posted on 16 November 2009

Dear mr kunal,

for the assessee who transferred the asset, the sale consideration is nil and the entire wdv in such case is treated as short term capital loss. depreciation can be claimed by the transferee alone.

praveen

Chartered Accountant

6971 Points Posted on 17 November 2009

Originally posted by :saranraj
"	Dear mr kunal, for the assessee who transferred the asset, the sale consideration is nil and the entire wdv in such case is treated as short term capital loss. depreciation can be claimed by the transferee alone.	"

How will you treat it as short term capital loss if there are some other assets in the block.

are to trying to say if you gift an asset it will be STCL.

Please reply

saranraj

CA FINAL

419 Points Posted on 18 November 2009

If the asset so transferred is the only asset in the block, there will be stcl. If there are other assets even after transfer, the value equivalent to the wdv of the asset has to be reduced from the block.