25 September 2012
Loss on sale of fixed assets not deductable under PGBP at the same time profit on sale of fixed assets also not taxable under PGBP as per income tax act.
So profit/loss on sale of fixed assets is taxable under the head capital gain. If such asset is depreciated asset then profit or loss on such asset would be taxable as short term capital gain/loss at the time of such block of assets became Nil or WDV goes to zero or negative only. In case such fixed assets not a depreciated assets i.e assets purchased as investments then the profit or loss on such sale of fixed assets taxable as either long term or short term capital gain based on the holding period of such sold asset(s) at the time of sale.
25 September 2012
is this capital loss on sale of fixed assets can be carry forwarded to next year ,and adjustible in the year in which section 50 applicable.
25 September 2012
2nd query is capital profit on sale of fixed assets, we will deduct profit on sale of f.asset from net profit as per p/l while computing income from PGBP, but where will shown this in ITR 5, if section 50 not applicable in that year
25 September 2012
Loss or profit on sale of depreciated fixed assets not required to show in the ITR it automatically adjusted in the block of assets of the schedule DEP. So no separate disclosure. So loss on depreciated assets is always short term capital loss so it has the same set-off as like normal short term capital loss.
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