Sale of old computers and perk

This query is : Resolved

sayali patil (Querist)
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22 August 2011 Our company wish to discard the old computers. The book value as per companies act as on date is only 5% of the book value.

If company wish to sale these computers to the employees at the same rate at which it would have sold it to the vendor then whether employee it would amout to perk in the hands of employees?

If yes then what will be the perk value taxable in the hands of employees?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 August 2011 There will be no perk in the hands of employee.

The Income Tax Rules Prescribes
50% of Depreciation Rate by reducing Method.

Naturally WDV as per IT will be quite lower than as per C Law.