Sale of fully depreciated asset

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dheeraj (Querist)
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21 April 2015 What if a an asset is fully depreciated over a period of years and it is sold. Is it taxable or not. If taxable why? not taxable why?

Like an example as follows
1) Mr. X Buys a computer on 01/04/2005 for Rs. 25,000, depreciation rate 60% pa. After 12 years the value of the computer is Nil or Zero. He sells the computer for Rs.1000 does he have pay tax for the sale of the computer?

Its urgent please reply as soon as possible.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 April 2015 There must be certain WDV if you provide depreciation as per the IT Act. 25000/- can not be zero.
.
(Looking to the urgency), if you purchase another asset in the same block of Rs. 1000/- or more , you will not require to pay tax.
.
In case there remains no assset in the block after such sell, the balance is treated as Short Term Capital Gain/ Loss.
.

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dheeraj

dheeraj (Querist)
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21 April 2015 Thank you very much sir. I owe you a lot.

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