does available ?

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AMIT

AMIT (Querist)
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03 August 2010
Benefit of indexation avaiable on block of asset ?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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03 August 2010 I.E IT IS CASE OF SLUMP SALE.

NO INDEXATION BENEFIT IS AVAILABEL ON SALE OF BLOCK OF ASSET WITHOUT VALUE ASSIGNED TO INDIVIDUAL ASSET.

slump sale means transferof one or more undertakings as a result of the sale for a lumpsum consideration without values being assigned to individual assets and liabilities in such sale.

If the undertaking is owned and held by the assessee for more than 36 months,it is a long term capital asset otherwise it is a short term capital asset.

Cost of acquisition and cost of improvement will be net worth of the undertaking.

Indexation benefit is not available

Report of a C.A. indicating co putation of net worth of the undertaking is required to be attached along with the return of income

srinath

srinath (Expert)
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03 August 2010 no indexation benefit for slump sale as pointed by bansalji

if u r referreing to transfer of the whole of block of assets then no depreciation if it is depreciable assets and resultant would be short term capital gain

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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03 August 2010 Indexation benefit not available for depreciable assets.

The difference between sale consideration & WDV of the block will be considered as Short term capital gain/(loss), as the case may be.

AMIT

AMIT (Querist)
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04 August 2010 Sir, not taking abt Slum sales

House propery is also depreciable asset

than y indexation benefit is available ?

What are the depreciable asset in which indexation benefit is not avaiable, please name some,

srinath

srinath (Expert)
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04 August 2010 depreciable assets are something which is used in business. and if u use house property in business den it is depreciable asset and therefore no indexation for tat....

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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04 August 2010 ASSETS USED IN BUSINESS LIKE PLANT & MACHINERY, CAR, TOOL & EQUIPMENT ON WHICH DEPRECIATION IS CLAIMED, IS CALLED DEPREICABLE ASSETS.
ON THAT ASSETS, NO BENEFIT OF INDEXATION.

AMIT

AMIT (Querist)
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04 August 2010 thanks sir

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