How can stcl on sale of machinery be adjusted?

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Preety Israni (Querist)

11 December 2012 A machinery is given on rent. The income derived from it is shown as 'Incoem from other sources' and depreciation is also claimed on the machinery. If the machinery is sold at amt. less than WDV, can short term capital loss on machinery be adjusted against long term capital gain on sale of immovable property?
Both the assets are sold in the same year.

Pankaj Gupta

Pankaj Gupta (Expert)

11 December 2012 Yes you can set off the loss against long term capital gain. It is irrelevant that the machinery was given on rent and income was derived from the head other sources. Because ultimately you have to see only that wheather it is a capital gain or capital loss.

Preety Israni

Preety Israni (Querist)

12 December 2012 What if the machinery is sold in one FY and the immovable property is sold in the next FY?
Can the Short Term capital loss on machinery which is c/f as per Sec. 50 be adjusted against LTCG on immovable property in the next FY?

Pankaj Gupta

Pankaj Gupta (Expert)

12 December 2012 yes it can be carried forward and set off in next 8 assessment years.

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