Direct taxes
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2013
can anybody explain the clear relation ship between terminal depreciation , balancing charge & capital gains
11 May 2013
These terms are used only in case of undertaking engaged in generation or generation and distribution of power. They use SLM basis of depreciation.
Suppose I have a machine having Original Cost as Rs. 100. Current WDV Rs. 75.
Now If asset is Sold for ---
1) Rs. 60, difference (i.e. Rs. 15) is terminal depreciation. [Sec. 32(1)(iii)]
2) Rs. 95, difference (i.e. Rs. 20) is Balancing Charge. [Sec. 41(2)]
3) Any amount over Rs. 100 will be taxable as either LTCG or STCG. [Here Cost of Acquisition would be 100]
Suppose I have a machine having Original Cost as Rs. 100. Current WDV Rs. 75.
Now If asset is Sold for ---
1) Rs. 60, difference (i.e. Rs. 15) is terminal depreciation. [Sec. 32(1)(iii)]
2) Rs. 95, difference (i.e. Rs. 20) is Balancing Charge. [Sec. 41(2)]
3) Any amount over Rs. 100 will be taxable as either LTCG or STCG. [Here Cost of Acquisition would be 100]
Message likes :
1 times
26 June 2013
I agree with the expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
