Computation of business income

This query is : Resolved

Shreya (Querist)
Follow

12 September 2011 There is a loss on disposal of fixed assets, the block of assets doesn't cease to exist,
the above loss is to be disallowed under which section in order to compute taxable business income?

Regards
Shreya

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

12 September 2011 If the block doesn't cease, loss should not be recognizes. Instead ,sale value should be reduced from the block WDV and to be depreciated at the prescribed rate on the so called reduced WDV.

Shreya

Shreya (Querist)
Follow

12 September 2011 I would be claiming depreciation on net WDV only,
i.e. the benefit of claiming depreciation on Gross WDV is reduced to Net WDV post reducing sale consideration...
is there any other way that the Loss on sale be reflected in computing the total income?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

12 September 2011 The law doesnot permit for any other way out.

Message likes : 1 times

Shreya

Shreya (Querist)
Follow

12 September 2011 Thankyou for the help Sir

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now