Depreciation on Motor Car
This query is : Resolved
RITESH KHANDELWAL
(Querist)
19 June 2009
Sir,
I would like to know if asa comapny i have sold out a motor car at Rs. 395000 whose WDV was Rs.538000 and the WDV of the entire block was Rs.3289000 then what is the treatment for Cpital Gain and depreciation for the current financial year.
I would like to know if asa comapny i have sold out a motor car at Rs. 395000 whose WDV was Rs.538000 and the WDV of the entire block was Rs.3289000 then what is the treatment for Cpital Gain and depreciation for the current financial year.
CA.SHAHZAD SAYYED
(Expert)
19 June 2009
Dear Ritesh
As per Sec.32 read with explanation u/s 43 of Income Tax Act,in case of Sale of any Asset you have to simply deduct the asset sold from it's Block and on closing WDV of Block you have to charge Depreciation.
As per Section 50A of IT Act, any gain arising on sale of Depreciable Assets shall always be short term capital gain
The STCG shall be Sale value as reduce by Closing WDV of Asset
in your case since sale value is less so no STCG
As per Sec.32 read with explanation u/s 43 of Income Tax Act,in case of Sale of any Asset you have to simply deduct the asset sold from it's Block and on closing WDV of Block you have to charge Depreciation.
As per Section 50A of IT Act, any gain arising on sale of Depreciable Assets shall always be short term capital gain
The STCG shall be Sale value as reduce by Closing WDV of Asset
in your case since sale value is less so no STCG
CA Nitin Wadhwani
(Expert)
19 June 2009
Since the block and WDV, there is no capital gain u/s 50.
CMA Ankur Pandey
(Expert)
20 June 2009
there is no capital gain
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