Capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 September 2011
Our is a Ltd co. We sold the machinery & profit is generated. in computaion we have to deduct the proift on sale of machinery.
What will be the treatment of profit on its sale whehter it will be taxable.
What about the capital gain on sale of machnery.Pls explain.
What will be the treatment of profit on its sale whehter it will be taxable.
What about the capital gain on sale of machnery.Pls explain.
21 September 2011
There are 2 issues.
1. Treatment as per Companies Act.
Profit or loss will be calculated in the sale of the machinery.
2. Treatment as per Income Tax.
The sale price of the machinery will be reduced from the block of assets.
If after the sale of the machinery, the block still exists, there will be no capital gain.
However, if the block of assets ceases to exist on the sale of the machinery, capital gain will arise.
1. Treatment as per Companies Act.
Profit or loss will be calculated in the sale of the machinery.
2. Treatment as per Income Tax.
The sale price of the machinery will be reduced from the block of assets.
If after the sale of the machinery, the block still exists, there will be no capital gain.
However, if the block of assets ceases to exist on the sale of the machinery, capital gain will arise.
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