Sale value of asset sold is more than wdv

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Tax (Querist)
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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?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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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

K Srinivas, CMA CS (Expert)
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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

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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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

K Srinivas, CMA CS (Expert)
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09 September 2017 Thanks for the clarification./

Message likes : 1 times

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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10 September 2017 Welcome... ......My pleasure......

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