Depreciable asset
This query is : Resolved
25 June 2013
Hello Everyone,
I want to resolve the doubt that if an assessee doesn't claim depreciation on asset used in business & Profession(However it's Mandatory)for several years say 10 years & now sells that & claims indexation,capital gain & all that what would the accurate Tax Treatment?
Thanks
I want to resolve the doubt that if an assessee doesn't claim depreciation on asset used in business & Profession(However it's Mandatory)for several years say 10 years & now sells that & claims indexation,capital gain & all that what would the accurate Tax Treatment?
Thanks
CA Sourabh Agarwal
(Expert)
25 June 2013
WDV needs to be calculated in accordance with provisions of Income Tax.
You cannot claim indexation since depreciable assets are short term capital assets.
Capital gain calculation depends on fact whether it is the only asset in the block. Capital gain/loss is calculated with reference to block, individual asset has no relevance.
You cannot claim indexation since depreciable assets are short term capital assets.
Capital gain calculation depends on fact whether it is the only asset in the block. Capital gain/loss is calculated with reference to block, individual asset has no relevance.
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