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Sale of fixed assets having wdv value zero

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Querist : Anonymous

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Querist : Anonymous (Querist)
28 August 2011 The shed value in books after depriciation is
zero say WDV is 0

Shed sold for Rs.11.00 lacs

New Shed is purchased for 13.00 in the same area of MIDC. is it comes under long term capital gain, if yeas what will be tax liability or if no what should be accounting
entries whether books shows shed value 2 lacs
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Ravikant

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Ravikant (Expert)
28 August 2011 For depreciable assets there is only short term Cap gains/loss.
In books Asset value will be Rs.11 lakhs
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CA Hardik Bunha

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CA Hardik Bunha (Expert)
28 August 2011 as per your case
IT IS IMPORTANT TO KNOW WHETHER YOUR SELL OR BUY PROCEDURE MADE IN SAME YEAR OR NOT.

IF IT IS MADE IN SAME FINANCIAL YEAR THEN,
NO SHORT TERM CAPITAL GAIN OR LOSS WILL BE APPLICABLE.
WDV ON OPENING 0
ADD: PURCHASE 13
-------
TOTAL 13
LESS ; SOLD 11
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WDV 2 LAKH

YOU HAVE TO CLAIM DEPRECIATION ON 2 LAK U/S 32. NO CAPITAL GAIN ATTARACT IN YOUR CASE.
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