sale of motor car
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 August 2010
A FIRM SOLD MOTOR CAR AMOUNTING RS.350000/ON 4-8-2010 WHOSE WDV AS ON 1-4-2010 RS.275000/-. A FIRM HAS BLOCK OF ASSETS OF MOTOR CAR, NOW RS.75000/ PROFIT IS TREATED AS BUSSINESS INCOME OR CAPITAL GAIN. PLEASE EXPLAIN ENTRIES IN BOOKS & DEPRECIATION CALCULATION.
Aditya Maheshwari
(Expert)
10 August 2010
Gain on sale of a depreciable asset will be short term capital gains taxable u/s 50(1) and liable to be taxed as such on normal slab rates.
Since the block in zero no depreciation for the year allowable.
Since the block in zero no depreciation for the year allowable.
CA. Pradeep Nayak
(Expert)
11 August 2010
In the books of accounts, you have to show Rs. 75,000 as Profit on sale of asset.
For Income-tax purpose :
a) Profit on sale of asset Rs. 75,000 shall be excluded from the business income.
b) Rs. 3.5 lakh(sale value) shall be reduced from the block of asset of motor car as on 01-04-2010. Depreciation will be calculated on the balance if any, in the block after such reduction.
c) If the sale proceeds exceeds the opening WDV + additions if any during the year, the difference will be Short term capital gains.
For Income-tax purpose :
a) Profit on sale of asset Rs. 75,000 shall be excluded from the business income.
b) Rs. 3.5 lakh(sale value) shall be reduced from the block of asset of motor car as on 01-04-2010. Depreciation will be calculated on the balance if any, in the block after such reduction.
c) If the sale proceeds exceeds the opening WDV + additions if any during the year, the difference will be Short term capital gains.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
