CAPITAL GAIN
This query is : Resolved
13 July 2011
Dear Experts,
If a company or any concern exchange their fixed assets for another new fixed assets from their gross block of fixed assets then capital gain/loss attract in this transaction or not? if application, then it will also applicable for individual also?
e.g. Company A having gross block of its fixed assets Rs. 50 lakh and out of which company exchange one assets for another fixed assets whose book value on the date of exchange is Rs.4 lakh and the new asset having cost Rs. 10 Lakh. Comapny paid only Rs. 6 Lakh (New Assets Rs. 10 - Old block of Value Rs. 4)
Please kindly reply me
waiting for ur reply.
Thanking you,
If a company or any concern exchange their fixed assets for another new fixed assets from their gross block of fixed assets then capital gain/loss attract in this transaction or not? if application, then it will also applicable for individual also?
e.g. Company A having gross block of its fixed assets Rs. 50 lakh and out of which company exchange one assets for another fixed assets whose book value on the date of exchange is Rs.4 lakh and the new asset having cost Rs. 10 Lakh. Comapny paid only Rs. 6 Lakh (New Assets Rs. 10 - Old block of Value Rs. 4)
Please kindly reply me
waiting for ur reply.
Thanking you,
CA PARAS BAFNA
(Expert)
13 July 2011
Add the amount of Rs 1000000/ of new machinery to the block and deduct Rs. 400000/ for the machine given in exchange. Charge Depreciation on Rs. 5600000/- by taking into account the date when the new machinery has been purchased.
There will be no capital gain in this transaction.
There will be no capital gain in this transaction.
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