Capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2014 If we sell a business asset then we calculate capital gains. However when in the business a block of asset ceases to exist and if sale consideration is more then we again charge short term capital gain so there can be charge of capital gains twice can someone please clarify the same?

vibhor

vibhor (Expert)
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02 May 2014 I think you are confusing Book Profits & Total Income as per Income Tax. In books, short term capital gain on sale of fixed assets will appear & added to profits. While computing Total Income, Capital gain will be subtracted from this business income & will be taxable under the head capital gains. No point of double taxation in it.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 May 2014 Sir I am confused as to when we sell the asset we charge capital gains and in calculation of depreciation as per Income tax Act if the block of asset ceases to exist and if sale consideration is more than the value of block of asset then again there is short term capital gain charged

Rupesh Jain

Rupesh Jain (Expert)
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02 May 2014 under income tax act if any block bal in minus due to tfr of assets during the year then you have to pay short term capital gain.

and if bal. is not in block then yuou cannot charge depreciation during the year.

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