ASSETS LOST BY FIRE NOT COVERED BY INSURANCE

This query is : Resolved

Venkat Venkataraghavan (Querist)
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01 November 2020 While I know that it is a capital loss under Income Tax Act 1961, how do we present it in the depreciation chart for IT returns? This is a practical query for filling in the data for returns.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 November 2020 Show it under disposal column of depreciation chart. Being depreciable asset chrge it fully to P&L as revenue expenditure. It's not a capital loss being depreciable asset it's only revenue loss.

Venkat Venkataraghavan

Venkat Venkataraghavan (Querist)
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06 November 2020 Thank you, Sir. I stated capital Loss presuming that the remaining value after deletion would be negative. So we need to show the WDV of the lost assets as deletions in the schedule, am I right?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 November 2020 In the books of accounts show the assets under disposal book the loss to p&l. Under income tax under block of assets concept continue to depreciate it.

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