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Income Tax

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(Querist)
18 September 2010 If I sold business asset for Rs.1,00,000/- whose WDV is say Rs.2,000/-, original cost of which was say Rs.50,000/- . Further, block of asset consist of only one asset which was sold.

As per Sec 41(2) amount chargeable to tax under business income is Rs.48,000/- and under sec 50(2) amount chargeable to tax under capital gain is Rs.98,000/-. In such a situation Rs.48,000/- is offered to tax twice?

Because Sec 50(2) specifies that the cost of acquisition would be the WDV of asset and not the original cost of asset.
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Nilesh Shah

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Nilesh Shah (Expert)
22 September 2010 Only the excess received, on sale, to the extent of the depreciation claimed, shall be chargeable to tax under section 41(2).

No question of double taxation.

Sincerely,

Nilesh Shah

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Jyoti P. Nayak

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Jyoti P. Nayak (Querist)
27 September 2010 What amount is chargeable to tax under sec 50(2)
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Aashok Kumar Sharma

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Aashok Kumar Sharma (Expert)
31 July 2024 https://docs.google.com/document/d/1GjFqKCSvpg1PL4MXMUBZHqMudcydoyTgAX9kK8SrUDc/edit?usp=sharing
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