Why is the Gain on Depreciable assets always considered as short term Capital Gain, when the assets are long term in nature?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 27 June 2011
as the depriciable assets are loosing its value every year due to depriciation, so new value is available at start of every financial year, hence the gains would be short term in nature always with taking WDV of last year in account as Cost of Acquisition.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 27 June 2011
| Originally posted by : U S Sharma | ||
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as the depriciable assets are loosing its value every year due to depriciation, so new value is available at start of every financial year, hence the gains would be short term in nature always with taking WDV of last year in account as Cost of Acquisition. |
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