How is loss on sale of depreciable assets treated while calculating Income Tax? Whether it is deductible from profit or should be added back?
Harish Nirmal (Student) (59 Points)
26 October 2016How is loss on sale of depreciable assets treated while calculating Income Tax? Whether it is deductible from profit or should be added back?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174190 Points)
Replied 27 October 2016
If WDV is positive and no asset exists in the block then such amount will be treated as short term capital loss.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 27 October 2016
Hello
If the whole of the capital assets forming part of a block of assets have been sold during a year and the assessee has suffered a loss after deducting the net sale consideration from the written down value of the block of assets then such loss shall be treated as short term capital loss and no depreciation shall be allowed from such block of assets.
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