Section 44AE

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Suresh (Querist)
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12 June 2011 sir,

i have 4 light goods vehicles till Feb 2011 and i sold one of the vehicle for rs.180000 now how shall i calculate the WDV for computation of capital gain and regular income for the AY 2011-12

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 June 2011 Income in respect of 3 vehicles for 12 months and income for sold vehicle for 11 months will be your business income. For AY
2011-12 basis will be Rs. 4500/ per Month.

Computation of Capital Gain -
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1. Provide depreciation as per IT Rates (30% or 40% as per the situation)for the years during which you held the truck and find out WDV as on 31.03.2010.

Subtract this value from Sales Consideration. Resultant will be Short Term capital Gain.

However any amount received higher than the original cost of the truck (in the case when the asset is a long term Capital Asset) , will be treated as LTCG,

Suresh

Suresh (Querist)
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14 June 2011 thank you sir, thank you so much for your precious reply and suggestion

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