Sale value of asset sold is more than wdv
This query is : Open
27 August 2017
Assessee is a proprietor
There is only one asset in the block of Motor Vehicles
Asset was sold in the month of February 2017
Sale Value of the asset is more than the written down value of the block
Questions -
1. Will depreciation be charged for 10 months before the asset was sold?
2. What is the accounting treatment of the above transaction?
3. What is the taxation treatment and how to show in the ITR?
There is only one asset in the block of Motor Vehicles
Asset was sold in the month of February 2017
Sale Value of the asset is more than the written down value of the block
Questions -
1. Will depreciation be charged for 10 months before the asset was sold?
2. What is the accounting treatment of the above transaction?
3. What is the taxation treatment and how to show in the ITR?
CA Rashmi Gandhi
(Expert)
27 August 2017
1.No
2. Profit is shown under Capital A/c.
3. Amt in excess of WDV is Short Term Capital Gain & shown in Capital Gain Schedule
K Srinivas, CMA CS
(Expert)
09 September 2017
Rashmi Ji, since the firm has used the asset for more than 10 months, it is only natural to allow depreciation i feel.
Please share your views
Please share your views
CA Rashmi Gandhi
(Expert)
09 September 2017
As per IT act if dep charged block wise & if sale value is more than block value then no dep charged on it....
K Srinivas, CMA CS
(Expert)
09 September 2017
Thanks for the clarification./
Message likes :
1 times
CA Rashmi Gandhi
(Expert)
10 September 2017
Welcome... ......My pleasure......
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