Capital gain/loss on depreciable assets

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Mohamed Ashik (Querist)

25 July 2012 A vehicle has been sold in the previous year. No depreciation claimed till now. Shall I calculate the capital gain without providing depreciation, to claim more short term capital loss and use the same to set off another long term capital gain on sale of land. Please answer this...

Guest

Guest (Expert)

26 July 2012 Depreciation is calculated only when asset exist at the end of the year..
Bt if u have transferred asset before 31st mar. then u can calculate capital gain without charging depreciation..

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shakti soni

shakti soni (Expert)

26 July 2012 Dear Ashik

Your query is not at all clear.....

My doubt is why capital gain will come......In income tax we follow Block of assets method....CG will come only when the whole block is exhausted.(Sec-50)

And there is a separate provision in income tax act which says about deemed depreciation.

Pls explain your query with the actual dates......and whether is it for business or individual purpose....etc..,

Rgds
Shakti Soni

Mohamed Ashik

Mohamed Ashik (Querist)

27 July 2012 Thank you Sakthi Sony..

A vehicle has been purchased 3 years ago. No depreciation has been provided till date for IT purpose. So the taxable income of the assessee for each of the 3 years is little bit increased. He paid tax in excess, because no depreciation was provided.

In the previous year 2011-12, he sold the vehicle and purchased a new one. Shall we calculate the capital loss simply, Sale consideration less expenses less book value( which is the original purchase value for which no depreciation provided from purchase till sales:3 years)

By doing this we can have higher capital loss to set off or carry forward. Can we do ?

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