Dep. on the sale of Fixed Assets...Urgent Sir!!
This query is : Resolved
26 September 2010
Dear Experts,
Very urgent sir....
Assume there were 10 fixed assets in the same block which was charged at 15%. During the year 2 assets were sold. One of the sold asset is a Car, the assessee has transferred the loss on sale of car to P&L A/c. But as per income tax act, until the block of assets comes to zero we cannot transfer it to p&l a/c. While computing total income statement i will disallow this loss debited to p&l a/c.
My doubt is the loss on sale of car (assume it as 20000) should it be proportionately distributed based on the opening balances to the other existing assets in the same block of the assesses record? Else can i show it as a separate asset as usual but claim depreciation in it?
With regards,
Rajesh.
Very urgent sir....
Assume there were 10 fixed assets in the same block which was charged at 15%. During the year 2 assets were sold. One of the sold asset is a Car, the assessee has transferred the loss on sale of car to P&L A/c. But as per income tax act, until the block of assets comes to zero we cannot transfer it to p&l a/c. While computing total income statement i will disallow this loss debited to p&l a/c.
My doubt is the loss on sale of car (assume it as 20000) should it be proportionately distributed based on the opening balances to the other existing assets in the same block of the assesses record? Else can i show it as a separate asset as usual but claim depreciation in it?
With regards,
Rajesh.
28 September 2010
First you must know what is the block assets concept?. Op.bal + addition - sale is cloisng block.As per your statement 2 assets transferred. such assets sale must be deducted after the addition of fixed asset.Her you must know that 10different fixed assets. You cannot bifurcate exact assets. Simply you can deduct the salevalue and show such income to short term capital gain or loss
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