How to show the profit on fixed assets in itr 4

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2013 An individual has a block of assets whose written down value is Rs. 25 lacs. From the block of Assets 1 asset is sold for Rs 5 lacs whose written down value is 2 lacs. The block of asset is existing at the end of the financial year.

Opening WDV 25
Less : Sale consideration 5
20

Under IT act NO capital gain will arise as block of asset is existind at the end of the FY.
The question is how to show the profit of Rs 3 lacs (5lacs – 2 lacs) while filling ITR 4.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

12 July 2013 Assuming Profit on sale of Asset has been shown in the P& L A/c-

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In computation start from NP as per P&L A/c and deduct such profit from NP.
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Also make adjustment for Depreciation claimed and allowable as per IT.
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In ITR you have to fill up PART-A- P&L on the basis of Original P&L A/c of the assessee.
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In Schedule BP -Start with NP.
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In Item No 30- Any other amount allowable as deduction - you can show the amount of profit on sale of assset.
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